Demand for office space in the areas of central London referred to as Midtown has increased sharply in recent months, according to the findings of a study on offices in the capital from CB Richard Ellis (CBRE).
The most notable commitment to offices in Midtown London of late came from the internet search engine and software powerhouse Google, which recently signed up to take 725,000 sq ft in the district. But Midtown is now attracting a wide variety of office space tenants and average asking prices for rent are rising as a result, according to CBRE’s latest research.
The real estate analyst and advisory firm looked at office markets across Central London in its latest study of sentiment in the capital and found that the scale of office space under offer rose by 47 percent in the first three months of 2013 as compared with a year earlier. The recorded rise is expected to lead to notably increased uptake of offices in London when 2013 is analysed as a whole.
Midtown London, which covers areas like Farringdon, King’s Cross and Kingsway, has apparently benefitted most from what CBRE describes as being a return to business confidence in London “following last year’s widespread uncertainty”. The cost of renting offices in Midtown is now at an average of £55 per square foot, according to CBRE’s figures.
“The promise of Farringdon’s Crossrail station is undoubtedly boosting Midtown’s appeal as a vibrant business location, appealing to a wide range of corporate, professional and to a greater extent TMT occupiers,” said Charlie Killen, executive director of Midtown and Southbank at CBRE.
“However, notwithstanding the improved connectivity, we’re noticing a number of West End occupiers also looking afresh at Midtown as an office destination, attracted by the relatively lower rents, availability of suitable Grade A stock and abundant leisure amenities.”
Midtown London lies close to both the City of London and the West End districts, both of which are consistently rated as two the most expensive and most in demand office space locations in Europe or the world.
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