Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

London office rates rise prompted by four-day work week

by November 9, 2023
November 9, 2023
London office rates rise prompted by four-day work week

Average office occupancy rates in the West End during the weekdays are close to pre-pandemic levels, and continuing to trump that of the City.

According to new research from Savills, occupancy rates in the area which spans from Oxford Street to Piccadilly Circus have risen to 62 per cent up from 50 per cent in the last six months.

The estate agent said that this can be credited to an increase in demand from finance companies –  excluding insurance – who are recording a 63 per cent average occupancy rate, due to the sector largely favouring a four-days-a-week in the office.

Savills said: “As many organisations in the private equity and investment management space favour West End locations, this has contributed to the district’s rapid increase in occupancy.”

In the City, weekday occupancy levels are continuing to lag behind, sitting at 50 per cent in September up slightly 48 per cent in February and 36 per cent in June.

Andrew Barnes, head of central London tenant representation at Savills explained that the numbers in the West End have shot up faster compared to the City due to its more “diverse occupier mix”.

He said: “When you break London’s average occupancy rates down by sector, finance (excluding Insurance), is second at 63 per cent, and includes a lot of private equity and investment management employees which tend to have strong ‘in the office’ cultures.

“Many companies in these sectors have their homes in the traditional West End strongholds of Mayfair and St James, and their robust demand for prime space continues to apply upward pressure on rents in these prime locations.”

It comes as London has been adapting to a new hybrid working environment, with many employers allowing staff to split their time between work and the office.

However, in recent months, major employers such as Lloyds Bank have been tightening up on their home working policies.

HSBC also last month ordered its 18,500 UK staff back to the office for three days a week.

Rebecca Webb, director of EMEA cross-border tenant advisory at Savills, said: “What is key is how the space is designed to meet the diverse needs of employees, ensuring that they have alternate work settings within the office to suit various tasks throughout the day.

“This therefore places greater importance on the shared spaces of the office which employees are expecting much more from for greater productivity.”

She added: “Demand continues to intensify for well-connected, good-quality office space in mixed-use locations, and amid construction delays and a shortage of prime stock, occupiers will have to compete for the best space, supporting prime rental growth.”

Read more:
London office rates rise prompted by four-day work week

0
FacebookTwitterGoogle +Pinterest
previous post
Co-operative Bank looking for buyer amid profits slide
next post
Rail strikes could end as RMT agrees deal with train operator

You may also like

One in five SME owners planning to sell...

September 28, 2023

Labour finalising £500m rescue for Tata Steel’s Port...

September 10, 2024

Communicating your ESG efforts through content marketing

July 29, 2024

Pay gap at UK’s largest companies widens

December 18, 2023

How to Use Korean Skincare for Winter-Proof Skin...

November 14, 2024

UK salary growth slows, paving the way for...

August 8, 2024

Serial entrepreneur Sir Tom Hunter calls for 15%...

August 23, 2023

Big rise in businesses founded by women with...

February 22, 2023

Business confidence back to levels before war in...

November 30, 2023

London remains at the heart of global corruption

April 20, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025
    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,564)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved