Demand for office space is high all over the UK but in particular London, where more and more companies are looking for commercial spaces in the capital. A new development or should I say redevelopment by a well-known property firm that is being built in central London should benefit central London office cleaning companies. The new commercial complex being built in Covent Garden will consist mainly of Grade A office spaces. The project is a redevelopment by Legal & General Property and it will cost the company £65 million making it the biggest project of its kind in this particular area in 2012. In total 55,000 sq ft are being built with a focus not only in catering for the growing demand of office spaces in the area but also with great emphasis on sustainability. For starters bicycle units and showering facilities are being implemented to encourage workers to cycle to work. This is great news for office cleaning companies providing their services in central London where the market seems to be saturated due to the lack of office spaces in the area. But new developments such as this one from L&G is giving new hopes for London office cleaning companies which are already working hard to secure future contracts once these new buildings are ready. While office cleaning companies are working hard to provide competitive quotes for their services, the demand for property is becoming so intense that property market analysts are predicting that rents would spiral due to such high demand and lack of new office space.
Demand for high-profile offices is on the increase in London where at the moment the segment is experiencing shortages due to the lack of Grade A office spaces available. But a recent report from the CPA (Construction Products Association) says that things are about to change considerably over the next five years.
Back in May we reported that demand for Grade A offices is high across the UK including London and the construction of such office spaces had dropped considerably over the past year. But this new report from the CPA gave new hopes for the construction industry as a whole. The report says that in the next five years the building of offices will climb by more than 50 per cent. Growth of high-profile London offices is set to have a positive impact upon the construction industry as well as on indirectly related business such as London office cleaning companies and estate agents. Commenting on the industry as a whole, CPA economics director Noble Francis stated that output in 2011 will retreat by 0.5 per cent, "followed by a greater fall of 2.8 per cent in 2012. In 2013 output will be broadly flat with just 0.2 per cent growth, before a return to some significant growth of 3.4 per cent in 2014". One of the biggest high profile projects waiting to be announced is the new one million sq ft Goldman Sachs offices to be built beside the current London headquarters of Goldman Sachs. A dream come true to any London office cleaning company. According to Property Week Goldman Sachs has up to 1.5 million sq ft of office spaces in London and it is planning to buy even more spaces like Plumbtree Court which is currently let to PricewaterhouseCoopers and has a market value of £94 million. This is great news for cleaning companies providing office cleaning services in London. With more offices being built specially these high-profile offices, the cleaning industry will surely benefit from it.
London office cleaning companies are preparing themselves for a highly likely surge in the procurement for their services. This follows a survey from the Royal Institution of Chartered Surveyors (RICS) revealing that office sales lead the way in commercial property sales in the first quarter of 2011. According to 43% of surveyors demand for office spaces in London has increased considerably, in particular for "Grade A" offices which in some areas the lack of new stock is leading to lower levels of availability. The increase in interest for office spaces in London is a clear sign of the economic recovery of the financial services industry with more and more companies looking to expand their operations in the capital. This is great news for London office cleaning companies who should experience an increase in the demand for their office cleaning services. But the industry might face a long term problem as supply is falling quickly and offices being constructed not only in London but across the UK are at a low level. "The survey does encouragingly suggest that demand to take up space is growing outside of the capital but not at a sufficient pace to change the mood on the rental outlook," commented Rics chief economist Simon Rubinsohn. For competitively priced office cleaning services in central London and surrounding areas contact Total Clean Office Cleaning Specialists.