City office interior demand to rise

Office design news from Morgan Lovell

Published on 24-09-2009

The lack of completions of new modern office design space in London's City district could lead to "unprecedented growth" in the office interiors market, it has been claimed.

Mat Oakley, director of research at Savills, said that the lack of forecast new modern office interior space due in 2011 and 2012 will probably lead to a very fast reduction in office vacancy rates and dramatic rental growth.

He noted that the window of opportunity to get new schemes in place to complete during this period is rapidly shrinking, probably now just within the next nine to 12 months.

However, Mr Oakley commented: "There is going to be quite a lot of vacant stock that is not the type of space that tenants want to be in and vacancies on that will probably continue to rise and rents will continue to fall."

According to a recent report by Cushman & Wakefield, office interior rents in New Bond Street were up by 6.9 per cent compared to June 2008, while rents in Oxford Street increased by 2.9 per cent during the same period.