Fears over Brexit include the possibility that international companies will leave London after Britain leaves the EU. However, this fear has not slowed down the demand for London office space.
Commercial property agent Colliers International has reported that office space take up by European firms was at a 15-year high in 2017. Major deals included
the Deutsche Bank, which chose to set up its new headquarters in London.
Over 12.2 million square feet of office space was rented or sold in 2017, the highest total since 2014.
High profile companies that have announced their intention to set up new London offices include Warner Music and cosmetic company L’Oreal. Facebook is about to secure a deal for new headquarters in the King’s Cross area.
James Walker, head of Colliers city agency said:
“It is clear that London’s magnetism for some of the world’s biggest companies hasn’t diminished.”
Television company Channel 4 is cutting hundreds of staff from London and relocating jobs to the regions. Although some businesses like Channel 4 are looking to save costs by moving out of London, this has not made a significant difference to the demand for companies wanting to set up London offices.
Though commercial property prices and rents are high in London, this has not affected the high demand for office space, and investors wanting to profit from London office buildings. There are plenty of commercial mortgage lenders who can provide funds to purchase office space.