Demand for London office space at three year high

Office life is set to continue despite the pandemic as commercial spaces surge in London.

Commercial space requirements in London stand at a three-year-high of 10m sq ft, up 41 per cent from last year according to research conducted by property agent Savills.

Of this space, 40 per cent are pre-lets with lease events stretching to 2023. According to Savills this means “occupiers would continue to consider pipeline options.”

London commercial development director Oliver Fursdon said: “Whilst there is still much debate about the longer-term impact that hybrid models of working may have on office demand, almost half of the pre-lets that have been exchanged this year are at least two years ahead of their scheduled completion.

Mr Fursdon continued, saying the surge in pre-lets illustrated “the continued importance occupiers attach to the office.”

The West End is predicted to achieve 3.4m sq ft by the end of the year.

High-profile completions in 2021 include Battersea Power Station, 550k sq ft, 1 Portsoken Yard, E1, 233k sq ft and 2 Gresham Street EC2 and around 180k sq ft.

In total, 17 per cent of the 31m sq ft of the extensive refurbishments and new developments scheduled for completion over the next five years have so far been pre-let.