The impact of the measures taken to curtail the spread of COVID-19 have dramatically changed the working landscape, not least of all for the commercial property market, claims a new report from property consultancy DeVono Cresa. Commercial occupier demand for London office space fell by 30 percent across Q1 of 2020, according to the report. However, it also suggests that the market fundamentals at the end of March remain relevant and will dictate heavily on future real estate decisions. More →

The number of young workers leaving London is on the rise, with net migration away from the capital growing, claims new research from Totaljobs and Professor of Economics at Lancaster University, Geraint Johnes. The new research, taken from analysis of ONS data as well as the views of 2,000 Londoners, suggests that since 2014, more than one million professionals have left London, with just 900,000 coming in. This is a net loss of 88 workers every day, with the biggest shortfall down to workers aged 25-34, the majority (54 percent) of them having given up hope of ever owning property in the capital. There has been a 49 percent increase in outbound migration of those in their 30s over the last five years. More →

A new report from Office Freedom claims that Central London is enjoying continued growth in demand for flexible offices, with no sign of slowing. Flexible workspaces have seen a dramatic increase in recent years, with Central London seeing particular interest for flex spaces.  The London’s growing flex appeal report takes a detailed look at Central London flexible workspace trends. More →

Rents for new, Grade A office space are likely to rise in many parts of London this year, a property consultancy has predicted. According to Carter Jonas, rents for prime located, new, mid-rise, Grade A space above 5,000 sq ft will typically increase by £1.50 – £2.50 per sq ft per annum by the last quarter of 2020 across most of the London office sub-markets. The forecast increases are being underpinned by continued low vacancy rates and unexpectedly strong demand as business confidence increases following the general election. More →

London is set for an increase in commercial property investment in 2020 as international investors target the capital’s high-yielding office market, following the decisive 2019 UK General Election result. According to the latest research from Knight Frank, investors have increased the total capital targeting London commercial assets to £48.4bn, a 21 percent rise on 2019 and £2bn higher than 2018. However, with just £2.3bn of buildings for sale, investors will face strong competition, which is expected to drive values higher in 2020. More →

Following sustained levels of leasing activity throughout the year, JLL has calculated that over 10.7m sq ft of office space in central London has been transacted so far in 2019 and with over 3m sq ft currently under offer, has suggested that take-up is on track to total 11.6 m sq ft at year-end – which is ahead of the 11.5m sq ft of space that was leased in 2018.  Both the City and West End commercial property markets are expected to see take-up levels broadly echo last year’s totals. More →

L’Oréal UK and Ireland has announced that it will be moving from its current office site in Hammersmith to a brand new bespoke building in White City Place, West London, W12. L’Oréal will occupy six floors of the eleven storey building, which is part of the new creative business district White City Place, developed and owned by Stanhope, Mitsui Fudosan and AIMCo. Other occupiers at White City Place include the fashion designers Ralph & Russo, online luxury fashion retailer Yoox-Net-a-Porter, the BBC and ITV Studios. The workforce of 1,000 employees at L’Oréal’s London-based headquarters are due to move in Autumn 2023 to the new building, which is when the company will reach the end of its current lease. Stanhope claims that the space will reflect L’Oréal’s culture, focused on collaboration, creativity and agility. More →

Planning permission has been granted for a new 13-storey riverside office building at the Embassy Gardens development on London’s South Bank. Named EG:HQ, the development will provide 217,000 sq. ft. of flexible space in zone 1 Nine Elms, in addition to 18,000 sq. ft. of outdoor amenity space which will include a 9,000 sq. ft. communal terrace and several private open-air terraces. More →

Although occupier demand remains high, the construction of new offices breaking ground in London over the last six months is down by nearly a half (49 percent) – the lowest level of new starts for five years, according to the London Office Crane Survey by Deloitte Real Estate. In the last six months, only 24 new schemes (1.8 million sq ft) commenced construction compared to 37 schemes (3.5 million sq ft) in the previous survey of London office building. More →

Over the past year, flexible workspace made up over a third of of commercial property transactions in London despite only making up around 6 percent of the total office supply in the UK capital, according to a new report by The Instant Group. More →