With property prices in Central London soaring, many owners are selling commercial properties to residential developers in a bid to capitalise.
“We have sold over 100 office buildings in Mayfair back into residential use in the past year,” said Peter Wetherell, founder of Mayfair estate agency Wetherell. “All the period office buildings that have been used as offices for 50 years are being turned back into homes.
With the number of Grade A properties across the capital subsequently falling, vacancy rates are expected to reach a low unprecedented in recent years.
Low vacancy rates vs. the amount of available stock will likely result in increased lease fees. Serviced office deals provide the security the ability to expand and contract as short notice provides, but finding a dedicated space with the required number of workstations may become harder.
The launch of the Crossrail project in May 2015 and the ongoing Aldgate regeneration project will see business in the capital refreshed, and the demand for workstations increment.
“Employing the skills of an office consultancy has never been more important to businesses of any size,” commented Steve Marsden, Global Sales Director for Search Office Space.
Steve Marsden
Global Sales Director, Search Office Space
“With the cost of space per square foot increasing and demand on the rise, the expertise of office brokers like SOS, helps businesses get the right space quickly at a rate that suits their budget. Our extensive portfolio means we can deliver real value in a competitive market.”
In anticipation of this influx of business owner interest, brokerages have turned their efforts to improved staff training and increasing on-the-ground knowledge of local areas, to ensure the best customer experience possible.
Business Centres converting to residential face steep redevelopment fees, under a Westminster Council levy. Section 106 of the planning law, a Community Infrastructure Levy, will see property owners with fees of as much as £500,000.
