Published By : 10 Nov 2015 | Published By : QYRESEARCH
In London, the central part of the city is witnessing maximum development of office spaces since 2008, as developers are motivated to offer construction for brighter years for the economy coming its way. In the last six months, new construction rose to 18% amounting to a total area of 11.1 million square feet, with employment rising to a record high and availability of office space remained to be the lowest in 14 years, as stated by a report by Deloitte LLP.
In this regard, developers are striving to deliver the office space that the market requires, as stated by a researcher at Deloitte LLP and author of one of the reports. In U.K., there has been good recovery on the economic sentiment.
After the financial downturn of 2008, office construction dropped sharply in the U.K., which led to shortage of space for the rents to shoot up obnoxiously. It is slated that Britain’s economy will rise at 2.4% in 2015 and 2016, as stated recently by the Organization for Economic Co-operation and Development.
More than 70%b of the new office construction is happening in the financial district of the City of London and the West End, with the biggest surge in office construction observed in Paddington.
Amongst the rentals for new office construction, technology and media companies are the biggest takers signing for 44% of the spaces available in new buildings. This was followed by financial firms that signed for 27% of the space. In this regard, Royal Bank of Canada has signed to lease more than 25% of Brookfield Property Partners LP at 100 Bishopsgate tower before construction is completed. The construction of the building is set to be completed in 2018, as stated by Brookfield and Royal Bank of Canada. In central London, Brookfield is the largest developer followed by Land Securities Group Plc. and Canary Wharf.