A recent study from commercial property advisors Savoy Stewart, using data from the Valuation Office Agency, has found a continuation of the steady growth in demand for office space in Central London, based on data over the years from 2000 to 2016. The study indicates the proportionally huge amount of office space in Central London compared to other areas of the UK, as the office floorspace in this area (21,092,000 square metres) makes up nearly one quarter of the office floorspace across England and Wales (89,037,000 square metres).
The report shows that from 2006-07 to 2015-16, the amount of office floorspace being utilised in inner London went from 19,264,000 to 21,092,000, giving an increase of 8.53 percent. In contrast, outer London saw a steady decrease in office usage; from 2006-07 to 2015-16, office floorspace in the outskirts of the capital fell by 441,000 square metres showing a 8.02 percent decrease. The City of London was the borough with the fastest rate of growth with a 14.49 percent increase, however Westminster remains the most popular office location within inner London. Most outer London boroughs experienced decreases over these ten years, but none as severe as Croydon, where office floorspace fell by by 14.05 percent.
A spokesman from Savoy Stewart commented; “We have witnessed major changes in the last decade including the rise of office alternatives to inner London which has become too expensive for a growing number of businesses.
“However… office floorspace in inner London was growing at a steady pace. This suggests that despite the premium cost, inner London hasn’t lost its appeal to businesses looking for swanky modern offices. On the contrary, it is becoming an even more attractive office destination than ever before.”