London’s office market is finally showing signs of recovery, according to researchers, with at least 130 companies actively looking for new office space in the capital.
Firms are on the hunt for more than 3m sq ft of space in total, Colliers said today, with half of them seeking to increase their office footprint. Nearly one-third of those looking for new space were in the financial sector, while 27% were tech firms.
The findings defy predictions from earlier in the pandemic that companies would look to downsize en masse as a result of the shift to remote working.
Tom Wildash, co-head of West End leasing at Colliers, said the statistics were “indicative of a changing shift in sentiment towards the office. The prevailing belief from this time last year that the office is dead is weakening with every week of homeworking.”
“Occupiers and landlords alike are now taking time to review their office portfolios in the light of Covid-19. We expect to see redesigns, lower density and greater employee engagement in fit-out plans. While office take-up over the next 12 months will be below trend, there is every reason to expect a surge in demand as 2021 progresses, relative to current levels.”
The news comes after a flurry of major leasing deals being announced in recent weeks, with tenants including asset manager T Rowe Price and Calvin Klein owner PVH Group signing for new offices in London.
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