London, where East meets West is taking the role of capital of the global village because of it accessibility and multi-cultural cosmopolitan tolerance, making everyone welcome. As a result population is growing relentlessly from 7.8 million today, as more and more people from all corners of the globe seek to visit, or settle, or work, or invest in London. Planners expect the population to increase by 1 million, hitting 8.82 million by 2031 and the number of households will rise from 3.32 million to 3.99 million
London Office Property
Since 1984 there has been a 41% increase in the stock of office space in London, with most of the growth taking place in the City and the Docklands, where 50 million sq ft have been built. In the West End, by contrast only 12 million sq ft has been built in that period. During this period office employment in London has doubled. Rents in real terms have remained static in the City for the whole period, but have increased substantially in the West End. That is because supply is constrained, with only around 3% of the stock vacant, effective rents are over £80psf. The City, by contrast has much more stock, and so the vacancy rate of 7.5% means there is 8.2 million sq ft available, with prices around £45psf. The Docklands presently has 7% space availability or around 1.5 million sqft, with prices down to around £27psf from headline rates of £38psf.
London Industrial Property
The Greater London industrial market is generally buoyant, with shortages of Grade A accommodation im many areas, as a result rents are increasing and in certain hot spots, such as Park Royal, Heathrow and Tottenham speculative development is now taking place. Rents vary from £8 at Croydon where there is plenty of space to £13.25 at Park Royal and up to £15 at Heathrow.
London Retail Property
Retail space in central London is in extremely high demand. Central London commands rental rates that are 4 times higher than the national average, with rents in excess of £1000psf in Bond Street, and over £600 in Oxford Street, Sloane Street, Covent Garden, the Brompton Road, and Regent Street. The London market is buoyant because it is a destination for shoppers from around the country and around the world. Outside of the destination shopping areas, footfall is down as the online shopping habit eats into traditional retail and an excess of supply of secondary retail has caused a collapse in the normal tenancy arrangements with landlords offering temporary deals at nominal rents to mitigate outgoings.
Leisure and Hospitality Property in London
Visitor numbers to London may have peaked in 2012 with the Olympics, but typically there are around 27 million staying visits to London each year. In 2012 around 8,000 new rooms were added to the London stock, but with the opening of the new Shangri La, the London Edition, the Beaumont and many branded budget hotels, a further 5,000 rooms will be added in 2013. In addition to hotels though, the hospitality sector has many other types of accomodation to offer, to fit all tastes and pockets, so hostels, guesthouses, serviced apartments and even boats vie to attract business.
UKBusinessProperty aims to offer an extensive selection of commercial property available to rent or buy in London.
We aim to offer a range of commercial property listings which include any possible businesses for sale in London. So it doesn’t matter what type of commercial property you are looking for in London, we aim to provide you with the best possible choice.
You may want to consider some of the following points as you carry out your search for commercial property in London. You maximum purchase price or rental value will be dictated by the amount the business can comfortably and realistically support, not just in the short term, but perhaps up to five or ten years in the future. These few tips are just a couple of points worth considering, however UKBusinessProperty should be able to help you easily research all the points that can have an impact on a decision to purchase or rent a commercial property.