September 2014 – London Office Buzz

Housing for London Employees

Posted on September 26, 2014

Compared to the rest of the UK, London has seen significant rises in house prices since the beginning of the recession. With the average home in the capital costing a painful £530,000 in 2014, many employees living in London are finding the property market is difficult to manage. Such steep rises are also reflected in rental prices, leading to a growing number of city workers commuting from outside areas, or living with their colleagues.

The Rising Cost of Housing in London

Between the start of 2014 and May 2014, housing prices in London rose by more than £87,000. The Bank of England’s governor, Mark Carney, has stated that there are deep structural problems within the city’s housing market, and that an absence of new builds may exacerbate the issue. Continue reading “Housing for London Employees” →

Famous London Landmark Buildings Being Used as Offices

Posted on September 12, 2014

When it comes to working in the city, life is rarely dull. From the constantly busy atmosphere through to working locations, London’s business sector is an exciting place for workers of all ages to be. In recent years, more and more companies have begun using famous landmarks as their office buildings of choice. For those who work in them, going to work comes with the simple pleasure of sitting in a building with historic significance, day after day.

The Batman Building in Clerkenwell
Sat in the heart of Clerkenwell is a building known as ‘The Batman Building’. In addition to finding fame for its role in Gotham City, this mid-19th-century glass and leadworks outfit is owned by the Farmiloe family, which was the original family to commission it. In addition to featuring in Batman, it has been snapped up by the producers of Inception and Sherlock Holmes.

Although this Clerkenwell building has continued to be popular amongst movie directors, the owners have since chosen to turn it into offices, targeting multinational corporations like Amazon. While those working for everyday small and medium businesses might not get a look in, the lucky few who do work for multinational corporations in the area may find themselves travelling to Gotham City on a daily basis for their 9 to 5 job.

The Gherkin
To the rest of the UK the Gherkin is well-known for its role in the business world. When it comes to visitors, however, it is a towering landmark that they’ll forever associate with London’s skyline. As a commercial skyscraper that sits in the heart of London’s financial district, the Gherkin is home to hundreds of city workers, who spend most of their days and weeks toying with the financial market from within its glass walls.

For those who don’t work in the city, the Gherkin presents an excellent opportunity to grab a bite to eat. At the top there is a restaurant, which offers one of the city’s best panoramic views. Those who walk into to play with the stock market may benefit from its luxurious surroundings on a daily basis, but everyday people can enjoy the views without so many city stresses. Continue reading “Famous London Landmark Buildings Being Used as Offices” →

Overview of London’s Commercial Property Market — 3rd Quarter 2014

Posted on September 5, 2014

During the third quarter of 2014, the commercial property market in London has greatly benefited from a strengthened economy. Low interest rates and improved consumer confidence have contributed to making commercial floorspace in the British capital attractive to the eyes of investors and property managers, many of whom are trying to make the most out of the fact that overall prices still remain well below the peak they reached in 2007. During the past three months, average values for commercial property in London have been 31 per cent lower than in 2007. Return rates on investment for all types of commercial property have hovered around the 15 per cent mark, a slightly higher figure than the one experienced during the first half of the year. The commercial property market in London remains largely dominated by overseas investors, who currently have a 57 per cent market share, followed by UK institutions and property firms. Read on for more details on the market’s performance during the third quarter of 2014.

The London Office Market Q3 2014

On the whole, the cost of office space in central London is currently 4 per cent below its 2007 record high values. Having said that, it is important to note that some areas within central London have managed to return to or even exceed their pre-recession values. This is the case of offices in the West End, whose value increased by 5 per cent during the third quarter of this year. At the end of August 2014, office take-up rates in London were 17 per cent higher than during the previous year.

The latest data also show that the gap in prices between primary and secondary office stock in the city has been consistently narrowing down over the past quarter. Moderate rental growth is now evident across most city locations. However moderate, rental value increases and rising occupation costs have led more than 40 corporate occupiers to relocate from West End core offices to cheaper properties in areas like Midtown, the South Bank, or the city fringe. Year-on-year rental growth values are now 9.8 per cent higher in Midtown properties (which have been clearly outperforming those in other areas) and 7.3 per cent higher in city fringe locations.

Another trend worth mentioning is the significant number of central London offices that have been earmarked for conversion into residential properties. In the West End alone, more than 800,000 square feet of office space are set to be re-developed into residential floorspace within the next few years. It is expected that this trend will continue, as during the past three months consent has been granted to dozens of planning applications that will result in office-to-residential conversions. Continue reading “Overview of London’s Commercial Property Market — 3rd Quarter 2014” →