MIPIM UK 2015: Occupiers are looking at outer London for offices spaces, MIPIM UK heard today.
Mike Slade, chief executive of Hellical Bar, speaking at the Outlook for London Office Market conference, said Hammersmith will lead the way with rents of about £50 per sq ft and the east might take a little longer to catch up.
But John Miu of APB’s vision is for a new financial district in east London to make the Docklands a key connection point between Asian and Western business as it was historically.
He said: “London has been growing organically we need more blood. We are creating a new heart within the same body and creating new arteries.”
John Burns, chief executive of Derwent, said the company would focus on refurbishing existing buildings to meet demand for non-traditional space.
It is predicted that professional services, such as law firms, are predicted to move out of traditional spaces and will downsize in the City if they stay at all.
The panel agreed that business rates evaluations and lack of affordable housing posed challenges for tenant retention in the centre of London, with an increasing importance on flexible leases.
