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Office Space in London Regaining Tenants

Posted by admin on October 29th, 2009 — Posted in Ads + Plugs, Best Real Estate Resources, Biz Ops

Office space in the city of London seems to be finding favour in the market once more. This heartening trend highlights the optimistic mindset among business circles for further improvement in the economic conditions post-recession.

Surveyors state that properties are beginning to fill up once again in and around the London city area. After a long gap of two recession hit years, the real estate business has finally received a much needed boost with this news. The period since March this year witnessed a healthy fall of 1.5 million square feet of untenanted office space to bring down the figures to 8.5 million square feet by the end of September.

Earlier, the slow market had forced landlords to offer huge incentives to attract new tenants. Some had even given bonus rent free months for long term commitments. Others had footed the bill for tenants to re furnish the premises to their liking and requirements.

However, the cash crunch and non availability of ready funding is still causing a slow down in the construction of new premises. With the total amount of offices to rent London remaining stagnant, the decrease in vacancies is even more apparent.

The market has recently forced landlords to tighten the apron strings though. The terms and agreements are now getting more strict as landlords too have their year end profits to consider. Rather than have an office space show up as a mere expense in the books with regular maintenance costs going out of the kitty irrespective of occupancy, landlords are settling for lower rents to keep the business moving.