If you have read our post on office costs worth negotiating, you will remember Michael’s mention that now is a better time than ever to get the best deals. It is currently a tenant’s market and at FindaLondonOffice we constantly strive to get better deals for our clients.
Stating that the market is currently open has prompted the following 3 questions from our readers:
- Has the market bottomed out yet?
- If I pospone a move, do I stand to lose out on potential savings?
- How long will the market stay tenant focussed?
Office commentators are good at saying what’s happening right now on the street, but worse at predicting movements in the market, which depend on changes in the hugely complex global economy. We are good at seeing the effects, but perhaps not so hot at predicting the causes.
Having said this, Central London office agents we meet on a daily basis are telling us they are starting to get busy again with lots of viewings and we are also noticing space, that has been on the market a long time, starting to go under offer.
Some analysts have forecast that the market will start to recover by the end of 2009, others have stated that what we are seeing right now is a “dead cat bounce” and that the market will not significantly recover until 2011.
A report by Knight Frank stated: “Central London rents will continue to fall for 18 months as supply peaks at the 2003 level of 12.1 per cent. We forecast a return to rental growth will return in 2011.”
Currently there is a great opportunity to secure better terms for your office space, but like anything in business, the market is subject to change. Whether a move is worthwhile depends on many more factors than the current economic conditions.
If you are wondering how current market conditions could benefit you, or if you have other questions about London office space, do contact us.