There are no two thoughts about it that office space in London is always high on demand, which makes the rental growth of long lets in London evident. By the end of 2014, the average rental is expected to shoot from 5 percent to 9 percent, which is anticipated to affect the business largely in the areas such as Mayfair, Marylebone/North Oxford Street, London Bridge and Soho.
Wondering why is this happening? That is because these areas have reasonably low vacancy level, which is paving way for people to come down and work in these areas. To be precise, the low vacancy level fuelled the boom in demand of rental homes. Furthermore, it is considered that more that 50 percent of the tenants in Marylebone are the employees of either Facebook or Google. By the year end, over 80 more moves are expected.
To add on, these areas are witnessing constant growth in business, and with the supply of office space being less, the rents are scoring high! It is believed by the Head of Central London tenant representation that 2014 will certainly see the drastic increase in rents in comparison to 2013 by the end of this year. Moreover, Marylebone rental market values are expected to grow by 20.4 percent till 2018 because of the arrival of huge corporate like Facebook and Google. Not less than 66 percent of the workers of these companies are living here on rent, for the reason that they have relocated for job purpose.
With the influx of technology and creative companies opening their centers in London, the increases in office rents have been shot up over the last few years. Also, the low vacancy levels, and an increasing in redevelopment of office buildings for residential use, the area is shunning the chances of being a low cost location.
The Howard De Walden and Portman Estates in London can be accredited for developing the area over the last decade into one of London’s finest and most desirable areas. For the fact that the firm holds 36 properties given out for long lets in London over the last year to corporate tenants, and these amounts to a total value of £1,407,363.