London’s office market in for a fall?

A recent article on the Financial Review website takes a look at the current situation for London offices and the forthcoming decision on Brexit – Expectations by some analysts see a fall in the market due.

We see a number of red flags that signal the start of a cyclical correction” Berenberg analysts led by Kieran Lee said. “the balance of risk is weighted firmly to the downside“.

With the atmosphere fully focused on Brexit be it that we are staying in, leaving with a poor deal or simply leaving as per the referendum of 2016 and with the vulnerability of the sterling and that a leave situation could bring an air of less attractiveness for having office space in London it points to some downward trends.

Rents falling, immigration falling, sterling falling / rising, England acting like a weak member of the EU can mean that what are already highly priced floor spaces across London will see rents falling, landlord profits falling and the likes of WeWork and similar easy to use office space solutions growing so that some kind of correction / adjustment may be due or at least a serious review of the situation needed.

An interesting point brought up were ‘millennial needs’ and the cost of keeping tenants / clients happy could be where a solution can be found such as investing in the likes of new ‘break-out areas’, cycle storage and more to keep in line with current trends and needs. Many offices across London are dated and no more is it simply putting them out to rent in whatever basic state will be enough, refurbishments / conversions / extra facilities and more will be needed to stay ahead of the game.

Is there a solution by the current trend of investments by local councils to snap up some lesser performing office space locations and turning them in to long term attractive hubs / work spaces that will show a long term ROI which is what many are looking for with their residential and commercial purchases across the country – Some councils purchasing property outside of their own zone.

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

How much will a Halloween Castle set you back

The latest research from Enness Global has revealed that, for those looking to follow in the footsteps of Count Dracula this Halloween, the average castle on the UK market will set buyers back around £2.2 million, requiring a deposit of £332,609 and a monthly mortgage repayment of more than £10,000. Enness Global analysed current castle…
Read More
Breaking News

How much is a Halloween home from Hell?

Halloween homes from Hell will cost you an average of £448k The latest property market insight from Yopa reveals that Hell is the most expensive Halloween-related road name in England, but those living on a road with Lantern in the name have seen an almost paranormal property price increase of 44.8% in the past year.…
Read More
Breaking News

Halloween house price drops hit 1 in 4 areas

The latest research from The Property DriveBuy has found that the vast majority of homeowners are in for a treat this Halloween, with just 24% of local authority areas across the UK seeing house prices fall since last October. However, homeowners in Westminster, Kensington and Ceredigion have seen the most haunting house price drops in…
Read More
Breaking News

Nine in 10 young flat sharers say they’ve lived with a ‘housemate horror’

Leaving dirty crockery in the sink and blasting music or the TV at antisocial hours top the list of most common ‘housemate horror’ traits New types of frightful flatmates have emerged including ‘Nocturnal Gamers’, ‘Persistent Puffers’ and ‘WhatsApp Micromanagers’ 64 per cent of house-sharers say ‘horror housemates’ have cost them money by not paying their…
Read More
Estate Agent Talk

How Local Market Trends Affect Your Home’s Selling Price

Introduction When planning to sell your home, understanding local market trends is crucial. Whether you’re working with estate agents in Selby or estate agents in Leeds, these professionals emphasize the importance of market dynamics on your home’s selling price. Local factors such as supply and demand, interest rates, and economic conditions influence property values. These…
Read More
Breaking News

The biggest Halloween rent hikes

Revealed – Where tenants have been haunted by the biggest Halloween rent hikes The latest market analysis from London lettings and estate agent, Benham and Reeves, has revealed which areas of the rental market are haunting tenants this Halloween, having seen the largest increase in the average monthly cost of renting since this time last…
Read More