City of London office space 'in demand again'

Demand for office space in London's financial district is soaring, according to figures from Knight Frank.

Article posted: 24 Jan 2011

New data from Knight Frank has indicated that demand for office space in the City of London among banks, brokerages and insurance companies has surpassed pre-credit crunch levels.

The figures show that offices occupied by members of the financial sector in central London totalled 6.4 million sq ft last year, compared with 4.5 million in 2007, the Financial Times reports.

Knight Frank said this rebound in demand, coupled with a restricted development pipeline, means the City is now experiencing a lack of supply and higher rents for office space.

The property agent predicted firms looking to rent offices in the City of London will have to pay £71 per sq ft by the end of 2014.

William Beardmore-Gray, head of City leasing at Knight Frank, told the newspaper: "There are financial firms we talk to who want to acquire offices and expand in London, and need to act ahead of approaching lease expiries in 2014 and 2015."

The Bank of England is expected to require new office space in central London when it takes on staff from the Financial Services Authority next year.

Construction work on 20 Fenchurch Street, the 37-storey Land Securities building nicknamed the "Walkie Talkie", began last week.

Posted by Aree J Rand