According to new research from Gerald Eve, London’s office market saw a resurgence during the third quarter.
In fact, occupier take up grew 30% to 2.8 million square feet, marking the highest level of activity since before the pandemic thanks to major London occupiers signing new leases.
The London Markets research shows that keeping activity continuous will rely on having an understanding of hybrid work policies and how office space plays a role in these arrangements.
This take up trend has been supported by a two-track market that has seen a slight increase in London availability from 9.4% to 9.6%, as well as growing demand for high-quality space and decreased interest in secondary offices.
Due to ongoing labor shortages, supply chain issues, and increased construction costs, this demand is likely to continue growing. In fact, buildout costs are expected to grow by 3.2 percentage points to 10.3% for October.
“By the end of September, visits to the workplace had risen to their highest point since before the pandemic following ‘back to school’ initiatives from many employers,” said Rhodri Phillips, Partner at Gerald Eve. “As businesses and staff find a new working rhythm, and competition for the best talent intensifies, the office has an important role to play, with our data suggesting that companies are acting decisively to secure high-quality space that fits with their business strategies.”