According to the Evans Randall company, the level of demand for office space to rent in London is increasing at such a rate that commercial property investments are becoming ever more attractive.
Relatively few office buildings are being developed in the City of London but businesses are beginning to employ more staff after the worst of the economic downturn and this has prompted an encouraging level of demand for prime office locations, experts explain.
And with this in mind, Evans Randall could be set to spend as much as £1.5 billion on central London properties over the course of only a 12-month period, Bloomberg BusinessWeek reports.
“Now is the time to buy the best quality assets if we can get our hands on them,” Michael Evans, founder and chairman of Evans Randall, is quoted as saying.
“The pound is very weak, interest rates are at a record low, rental demand is at an exceptional level – the best at any time since 2006,” he added.
Evans Randall co-owns the so-called Gherkin building, which is one of the most iconic prime office spaces available for rent in London.
The company also exchanged contracts with UBS Global Asset Management recently on a £127 million co-ownership deal for 200,000 sq ft of office space in Milton Gate, London EC2.
Editor’s notes: Evans Randall and their 50/50 joint venture partners, IVG, had acquired the Gherkin for £600 million in 2007.
In Q4 of 2014, the multi-let office building was sold to the Safra Group which is controlled by Brazilian billionaire, Joseph Safra, for £700 million.
A winner of the prestigious Royal Institute of British Architects (RIBA) Stirling Prize, the highly distinctive office building is occupied by high-profile companies including Swiss Re, ION and flexible workspace provider Regus.
In April 2023, 5,162 square feet of office space was available to rent on the 13th floor and was marketed at an asking rent of £62.50 per square foot.