For the Smart Money Cookie

It is common knowledge now that the City of London office space market is looking up. The numbers make it all the more evident. As of now, there is as much as 700,000 sq ft of desk space to rent being negotiated for leases. This is in stark contrast to Q1 2009 when the market saw its lowest point in history in terms of office space take-up.

Analysts have attributed many reasons behind this uptrend in the office space market in the City. One of the major reasons being cited is that a large number of long terms leases were signed in the 80s and the 90s for 15-year and 25-year periods. These leases are now expiring and the tenants are looking for new office space.

Another reason being given is that large companies are now looking for spaces that can give them sustainability. After the recession, companies have become cost conscious and the staff levels have changed. This in turn has brought about a change in the office space requirement for these companies. So as their existing leases expire, large companies are looking for new office space that is more suited to their changed requirements.

Changes in technology are also resulting in a shift in the office space requirement of many companies. These days more and more of corporate applications and data are being stored in data centres, as employees now use ‘cloud computing’ to access these resources. This has meant that the amount of technical equipment required in an office has changed, and hence so has the office space requirement.