London office space availability 'is increasing'

The amount of prime office space available in central London is still rising, but the number of deals taking place is on the increase.Prime office space in central London is still available, one property consultancy has stated, news that may interest firms that are considering market entry in the capital.

According to James Roberts, head of central London research as Knight Frank, the amount of commercial space available to businesses is "still rising".

He explained that the number of companies leasing office space was low during the first quarter of the year, but activity in the market has since improved - with many of the firms moving to central areas operating in the IT sector.

"You are seeing an underlying level of demand coming through from … IT companies," he remarked, adding that some are choosing to relocate from their offices on the fringes of the city and occupy a more central location.

His comments may be welcomed by overseas IT companies that are looking to carry out market entry in the UK as part of an expansion plan.

Research recently carried out by DTZ has suggested that London is the only office market in the world that offers 'fair value'

The firm's Money Into Property report, published last month, found that prime rents in the City are now 31 per cent lower than their peak values, with costs expected to decline by a further 14 per cent over the next two years.

Written by Julian Poulter and Copyright "Selling People 2009"