When it comes to supply and demand, the latter is outweighing the former in terms of office space across the United Kingdom, and nowhere is this truer than in London, particularly when it comes to Soho office space. A new report has suggested that businesses hoping to move into new business centres during the course of this year could well find that there is simply not enough office space available to meet their requirements.
While the rental rate of serviced offices is anticipated to be lower than average, some professionals are predicting that certain areas in London could well run out of serviced office space in Central London by the end of 2012, or possibly even earlier.
A combination of a lack of new development and high demand is responsible for the situation, with both factors converging to drive the shortage of serviced offices in London. In particular, a shortfall in London within the next 11 months and in the West End in just about eight months is anticipated.
Property professional are also forecasting that rents will increase by around 1.7 per cent across the United Kingdom as a whole. Those increases, however, are likely to be higher in those regions experiencing shortages, including the West End, which is likely to increase in rent by around 3.5 per cent, and the city of London, which could see an increase of 3 per cent.
