The great central London office crisis

"Just as London seems incapable of solving its housing crisis, now it faces a potential office crisis as well. And it is going to get worse. Such is the scale of the shortage that records are being smashed for office rents in the City as occupiers snap up the space that does become available."

"Last week it emerged that a new high of 160 a square foot was achieved for the 32nd and top floor of the One Leadenhall tower. According to reports from CoStar News, San Francisco-based cryptocurrency group Ripple Labs has leased 90,000 sq ft of space in the development, next to Leadenhall Market."

"According to research from Knight Frank, 170 deals with three-figure per square foot rent were completed in central London last year. Prime rents in what property folk call the West End Core rose 15.6 per cent to a record 185 per sq ft, while those rents in the City Core reached 102.50 per sq ft, a 7.9 per cent annual increase."

London's property market has shifted dramatically from the pandemic-era exodus to suburbs. Office space is now in severe shortage and hottest demand, contradicting expert predictions about permanent remote work. Record rents are being set across the City, with lettings above 100 per square foot becoming commonplace. Ripple Labs leased 90,000 square feet at One Leadenhall tower for approximately 10 million annually at 160 per square foot. The Liverpool Street area experiences particularly intense demand. Knight Frank reports 170 three-figure per square foot deals in central London last year, with West End Core rents rising 15.6 percent to 185 per square foot and City Core rents reaching 102.50 per square foot.

Read at www.standard.co.uk