by Jbs012510 e3 — January 27, 2010—The amount of office space available to tenants in London declined for the first time in two years as the London economy started to lead the country out of recession, according to RICS’ (Royal Institution of Chartered Surveyors) latest U.K. Commercial Property Survey.
Demand for business property increased in the fourth quarter of 2009, particularly for office space and industrial property, but demand for retail space continued to decline. Tenant demand rose from eight percent in the third quarter to 14 percent in the fourth quarter, marking the second successive rise in tenant demand and the first time that there has been an upward trend since early 2007, notes RICS.
The amount of available floorspace in London fell eight percent, down from a positive balance of 37 percent. This is the first time the net balance for office availability has turned negative for two years, says RICS, with central London witnessing the strongest upturn in activity. As a consequence, the lack of available space has had an impact on office rents in the capital, which stabilized for the first time in two years.
