Office space is rarer than ever – making the right choice matters
High-quality office space in London’s premium areas is becoming rarer than ever, and that’s why having trust that your company is making the right move – at the right time – matters.
The vacancy rate of offices in London’s central areas is plummeting, showing that demand for good space is soaring.
While nearly 40 per cent of office space in central London was empty in 2020, the vacancy rate in these areas is now at 11 per cent, and looks set to dip into single figures in the next few years.
Some experts, including estate agents Knight Frank, say this figure could be even smaller in the highest-demand areas – with as low as one per cent of Square Mile and West End offices being vacant.
This looks like it might suggest that office space across London is becoming hard to come by, but that’s not the case.
In fact, at the same time that the vacancy rate in central London has been tightening, the amount of spare office space in other areas of the capital has been growing at an even faster rate.
Back in 2020, there were fewer available offices in London’s “fringe” than in the centre of the city.
But this trend has since reversed at rapid speed, with the vacancy rate of offices in London’s outer areas having risen from a low point of 19 per cent in 2023 to 37 per cent at the end of last year.
So, while there is plenty of office space in certain parts of the capital, this shows that businesses are vying for the space which is up for grabs in central London – even if it comes at a price.
Placing your business in London’s most central areas – like Canada, the West End and Canary Wharf – has huge benefits, both for firms and for employees.
Because of the scarcity of office space in these areas, office providers are developing to help businesses adapt to the space that is available, whether through flexible leases, adaptable office sizes or customisable fit outs.
Leading London office provider Halkin is pioneering ways to make in-demand, central office space work for all types of company.
Many of its locations – including Euston, the Square Mile and Mayfair – are among those that have soared in demand in recent years.
The squeeze on office space in recent years has highlighted the importance of buildings being customisable and flexible for all needs.
Halkin offers an in-house design and build team, so companies can develop the space that suits their needs, without needing any construction or architectural expertise.
Its tenants have added internal meeting rooms, executive offices and phone booths to their spaces – benefiting from flexible financing which allows businesses to spread the cost.
Contact Halkin to explore their range of flexible office space.