FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
New research from global real estate services provider, Savills, has revealed that office demand in London year-to-date is up and more companies are upsizing than downsizing.
Savills says despite a subdued start to the year, 2023 activity already shows “encouraging signs” for the Central London office market with high levels of underlying demand. The analysis shows active Central London requirements equate to 9.7 million sq ft, 10 per cent ahead of the 10-year long-term average.
Performance is boosted significantly by Insurance & Financial sector occupiers with demand in 2023 signalling the strongest level in nine years, says Savills, standing at 4.1 million sq ft and accounting for 42 per cent of the market. It adds that particularly of note, are Legal, Private Equity, Investment and Asset Management sub-sectors, with the latter accounting for the majority of active demand at 15 per cent.
Analysing active office demand (occupiers seeking 10,000 sq ft of office space or more), Savills notes Central London continues to see more companies upsizing (52 per cent) than downsizing (22 per cent), while 26 per cent are looking to take the same size space they currently occupy.
Commenting on the research findings, Jon Gardiner, Head of Central London office leasing at Savills, said: “Although the start of 2023 has been relatively subdued the underlying fundamentals, particularly on the demand side, are very encouraging. There are clearly major challenges affecting the global economy which in turn are impacting decision makers for investors, developers and occupiers. However with London’s development pipeline looking increasingly limited there are opportunities to deliver prime new build and refurbishment schemes in to an undersupplied market over the next two to three years.
“This latest research instils further confidence in the Capital’s office market, demonstrating not only some of the strongest levels of demand seen from professional services in a decade, but also that businesses are committed to space. The challenge going forward will be meeting demand, and much of this in the near term will need to be through high quality refurbishments.”
With the current economic crisis resulting in higher prices and more of a squeeze on resources, FMs need to ensure that they have robust building and maintenance services in place to control costs and reduce the need for emergency repairs. When it comes to drainage and plumbing there are also the challenges of dealing with extreme weather, from droughts to flooding, the need to meet stringent regulations and to avoid causing environmental damage.
UK drainage specialist, Metro Rod, has launched a survey which explores the main areas of interest for FMs in maintaining drainage and plumbing, including how they currently assess their supply chains to ensure they’re working with partners that meet the highest possible standards and provide value for money.
The results will be published online so that you can see how you compare to others within the sector.
The survey should take just 5-10 minutes of your time, and as a thank you, you will be entered into a prize draw, where one lucky winner will be picked at random to receive a £100 Amazon voucher.
To take part click here.
