London Office Market Continues To Strengthen
Based on a new research which was conducted by Knight Frank, the levels of London office rent have proved to be more resilient lately as compared to the previous downturns as well as recoveries. In the study, it indexed the office rents of the city of London at 100 for the pre-downturn peaks that were recorded in the fourth quarter of 1989, third quarter of 2001 and the fourth quarter of 2007. The study showed that the rental in the city in the most recent downturn have found a floor and then moved into a recovery phase far sooner compared in the early 1990s and the downturn in the early 2000s.
Likewise the current recovery in the rental of the city has proved to be far more enduring compared to what was seen after the downturn during the early years of 2000. That particular market cycle just lasted for about six years with the occurrence of the global financial crisis in the later part of 2007. Today though, the market is now over seven years from the peak in the rents and growth is still very evident. Growth in the industry is expected to continue and grow in the years to come.
A tenant representation partner of Central London from Knight Frank, Bradley Baker said that the figures clearly demonstrated that the market in the city has proved to be far more resilient recently compared to anyone would have thought eight years ago when the global financial crisis began. One of the keys to the success of the city has been its important diversification away from being too dependent on the financial sector and instead embraces and attracts media firms and technology firms like Amazon, Uber, Saatchi & Saatchi and Hachette. Unlike in the previous downturns, the current recovery in the market began within two years of the initial crash in the market. It has been sustained for more than 5 years.
The report in an improved market for the property sector is an encouraging one for those who are into the painting and decorating businesses like MC Decorators in the UK.