Businesses must have “long-term office space plans,’ experts suggest | 22 October 2014
An ongoing shortage in the supply of office space in London means law firms in the UK should look further into the future when securing office space, it has been claimed.
Data published earlier this week by Jones Lang LaSalle (JLL) highlighted the lack of prime premises in the capital, by pointing out that the number of companies being forced to pay over the odds for space has risen by seven per cent. The company’s report puts prime rent in the city at £60 per square foot, although a number of organisations are paying decidedly more than this, thelawyer.com reports.
JLL’s research director for Europe, the Middle East and Africa, Tom Carroll, believes firms should prioritise thinking ahead to ensure they get the best deals. He said: “Traditionally firms looked at the two- to three-year horizon but a greater timeline is required now because of the current shortage of stock.”
According to the report, law firms have accounted for a significant proportion of market activity over the last ten months. In 2014 so far, there have been 14 transactions involving organisations from the legal sector, making up 13 per cent of London’s total take-up in that time. Up to now, 399,881 square feet of space has been acquired; a slight drop on the 434,155 square feet recorded at the same point of 2013.
It isn’t just prime space that’s in short supply in the UK’s capital either. Earlier this week, property firm DTZ claimed that grade B premises were at a 13-year-low. According to cityam.com, there is now 5.1 million square feet of space available, 74 per cent less than at the same time ten years ago.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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