The increase in remote working as a result of the coronavirus is seeing many businesses closing or reducing the size of the London office space.
Companies operating in London are closing their offices ay a rate faster than was seen during the financial crisis. Since June, over one million square feet of commercial office space has become available for sublet, according to new data from real estate company CoStar Group Inc.
As the Covid-19 pandemic continues to mean that many people are working from home, businesses are switching to remote working. This means that many offices now have excess space, which comes at a premium cost in the capital.
Currently, it seems as though this trend for getting rid of offices is only limited to London. In June, the city saw available second-hand space increase by 21% compared to the rest of the UK, which only saw a 1% rise.
Mark Stansfield, head of UK analytics at CoStar, said in a note to clients: “The success of home working, coupled with ongoing concerns around public transport and coronavirus infections has led many firms to reconsider their office space needs. Some of this impact is now being seen in the data.”
Although offices are seeing many people return to work, with the reopening of schools triggering a rise, there are fewer commuters in London than before the virus. According to data from Transport for London, the number of people commuting via the Tube is still just a third of last year’s figures at this time.
The increase in office sublets within London opens up a new range of opportunities for companies wishing to increase their office space or open a base in the capital. Now could be the ideal time to make the most of cheaper workspaces, something that is a rarity in London.
With newly developed space that hasn’t been leased yet being a fairly rare commodity in the capital, the rise in sublets provides a great opportunity for those who aren’t switching to a predominantly remote way of working.
If you are looking to expand or open an office in London in the coming months, we can help y make the most of your space. To discuss office design and refurbishment, get in touch with our expert team and find out how we can create a workspace that works for you.