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Office spaces in London are still being favoured by new tenants and businesses if the statistics being recorded are observed. According to reports, approximately 700,000 sq ft of London rent a desk space here will soon be leased out to various takers with whom terms are under discussion. The rental boom is a heartening development to property market players especially because the industry was at an all time low in the first quarter of last year.

According to industry analysts, the boom can be attributed to several reasons. Many businesses are realigning their operations to maximise savings and this also means moving into more cost effective and economical work spaces. The recession also forced many lay offs and businesses which emerged from the meltdown with fewer employees can now manage well enough from smaller spaces which is also contributing to the take up of better suited office spaces by such businesses.

In addition to these factors, many of the 25 year and 15 year leases signed earlier are now drawing to a close and these tenants are also likely to be on the look out for better office space options.

Digital and technological advancements have also played a role in spurring tenancies. With the launch of cloud computing solutions businesses no longer need to set aside space for bulky storage equipment. Data is now increasingly stored off site at data centres rather than within the business’ office premises. This has changed the way employees operate and also the space they need to set up all the equipment they require. With these developments the amount of office space needed by a business has changed and this is also causing many to move out to more suitable offices.

It is also believed that the reduction in bank loans has effectively reduced property development projects which had resulted in a shortage of available commercial space. This has given the impression that London office spaces are shrinking owing to heightened demand. Although there is real improvement in the office space markets across UK as evidenced by the state of affairs in London, there is still scope for more growth here, according to experts.