Contrary to popular belief, layoffs, inflation, and a recession tell only half the story about today’s economy.
While many companies are seeking to slash their costs and downsize in an effort to stay afloat during the economic unrest, others that have embraced a distributed workforce are surprisingly looking to offices to support their staff.
And many are turning their sights to London.
In recent months, several U.S. unicorns and public organizations have announced plans to expand in the city. According to FDI Markets, London has attracted the highest number of foreign direct investments into the tech industry.
But this is only half the story. London & Partners Managing Director Janet Coyle says that the financial benefits could explain why so many companies are looking to establish a presence in the city.
In addition to tax incentives, businesses can access the city’s “Enterprise Investment Scheme, Patent Box Scheme, and the ‘regulatory sandbox,’” says Coyle, which makes it simple to test new products and services in London.
A report from Cushman & Wakefield also showed that many new Central London leases came from new entries into the market. As a result, the city’s office market is experiencing a welcomed resurgence.
“We expect the post-pandemic evolution of London’s office market to continue as occupiers focus upon easily accessible, high quality office space surrounded by vibrant amenities,” said Ben Cullen, head of offices at Cushman & Wakefield UK.
“The key will be about creating locations where talent wants to be.”