Last month, the take up of office space surpassed the average for the past ten years once again. According to the real estate consultancy company CBRE, businesses negotiated 1.2 million office square footage for offices in the centre of London throughout July. Over the past decade, on average, one million square feet of space for offices has been filled in the city every single month.
Facebook's decision to massively increase its office space in London is a significant driving force in the trend for city office leasing. The US based online social network giant have rented over six hundred thousand square feet of commercial space for offices in the Kings Cross area of the city. They intend to open their new offices in 2021, providing as many as 6,000 members of staff with desks in the United Kingdom. Included in the deal is 15 percent of the available commercial space in Kings Cross, which includes 21 and 11 Canal reach and P2, situated in Lewis Cubitt Square.
Facebook is not the only US tech giant to have picked Kings Cross for their base in the UK - they join Google, Amazon, and Apple. It is interesting to see that despite fears around the impact of Brexit, they have put their trust in London.
This trust and increase in the demand for London-based offices is a great sign and gives many confidence. While the report has shown that there was a five percent fall in the take up of office space when compared to the month before, Simon Calvert, a Senior Director of CBR, remained optimistic, stating that “it is a sign of international confidence in London that major tech and creative companies are continuing to acquire large volumes of space across the capital”.
This came after findings that the biggest proportion of July’s leasing of office space was by creative organizations. This industry accounted for 61 percent of the month's total - 679,000 square feet of total office space leased. The business industry was the next, accounting for 17 percent of the space. It is also important to note that providers of flexible office space obtained over 100,000 square foot of space for offices in the city.
The report also stated that under offers were 43 percent more than the average for the past ten years. This equates to more than four million square footage. This tells us that there is no slowing down in the interest of property for commercial purposes in the UK capital city.