Central London Office Availability up 51% to Highest Level in More Than 15 Years

Office availability in central London has risen by 51% since the end of 2019 to stand at its highest level in more than 15 years, according to CoStar Group, a leading provider of online real estate marketplaces, information and analytics in the property markets.The 31 million square feet available as of August 2022 is up from a figure of circa 20 million square feet as the pandemic struck. It is also three million square feet above the peak of 28 million square feet reached in the aftermath of the financial crisis in mid-2009.The pandemic and enforced pivot to home working led to a sharp drop in leasing plus a big rise in sublease availability in the early part of the crisis as firms sought to offload unused space. While this sublease trend has since subsided, as tenants have either taken back space or let leases expire, overall availability remains stubbornly high amid an ongoing pivot to hybrid working, sublease space being returned to landlords and new buildings beginning construction.However, the market may be turning a corner, comments Mark Stansfield, senior director of UK market analytics at CoStar. “The availability increases recorded during 2020 and 2021 have levelled off this year which, together with other positive indicators such as rising take-up and stabilising void periods, suggest that the bulk of the pain is behind us.”

CoStar Group – Central London Office Availability up 51% to Highest Level in More Than 15 Years

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Dr. Oliver Everling

Independent since 1998, he is Managing Director of RATING EVIDENCE GmbH. As visiting professor of Capital University of Economics and Business in Beijing, former chairman of the supervisory board of a rating agency, advisory board member, advisor, member of rating committees, chairman of ISO-TC Rating Services, author or publisher of books and a magazine, Independent Non-Executive Director under EU Regulation on Credit Rating Agencies, he has been or is involved in ratings from a variety of perspectives. Previously, he was for 6 years department director at Dresdner Bank and, until 1993, managing director of the Projektgesellschaft Rating mbH after a doctorate at the banking and stock exchange seminar of the University of Cologne.

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