1210 commercial leases: Greater London

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Greater London boasts over twenty submarkets of commercial property. Companies continue to battle for secure space as the supply is still experiencing a backdrop. The vacancy rates around London are continuously dropping and have already reached the 5.6% rate. Brexit has caused a notable decrease in EU investment in the local office market, allowing the US to take over. This is expected to drop the vacancy rates even lower since new office supply is being detained. The shortage of supply has created two major commercial property trends in London. Old venues are being redesigned to offer flexible office space and comprise more workers, while bigger companies are slowly downshifting not only further away from the City, but across the whole London commuter belt. And since 50-67% development pipeline has already been pre-let, the situation issue is expected to become even more severe. However, modern trends show that flexibility has become one of the major solutions that helps battle the office space crisis in Greater London. Flexible office space has become more competitive than traditional leases. Since new-school office providers can offer great prices for turnkey solutions and all-round flexibility - more and more tenants become keen on their offers. This trend has forced other landlords to innovate and create their own flexible space in order to stay relevant and keep up with the competition. Flexible offices are able to bridge the gap between startups, solopreneurs, freelancers and home-based companies that were previously unable to rent offices effectively. Moreover, fully-managed solutions are at the top of the tenants’ demand, since they provide top-notch facilities and are still affordable due to cost-sharing.