Increased demand causes 12% spike in office rent.

Office rents in the City of London have increased by almost 12 per cent over the last three months. This statistic reflects the increased demand from corporate occupiers on the one hand, and a lack of good quality office alternatives on the other. The increase ended almost two and a half years of rental falls across the market, and reflects the shortage of new offices following the credit crisis. The credit crisis halted most new developments, leaving prospective tenants with limited choices. Therefore as the economy starts to pick up there will be a limited availability of satisfactory office space, creating the perfect conditions for a spike in rent. As James Gillett, director of City offices at NB Real Estate, puts it :
“Often the harder a market falls, the stronger it bounces back. Rents fell off a cliff post Lehman Brothers. We are now seeing them rebound strongly as demand from occupiers recovers and the supply of prime office space dries up.”
Therefore it seems clear that many small businesses and entrepreneurs will have to seek creative alternatives to meet their office space requirements. One innovative solution may be the virtual office – a relatively new way of doing commerce that has the potential of saving cash for both business owners and their clients. Essentially a virtual office is a combination of off-site live communication and address services that allow users to reduce traditional office costs while maintaining business professionalism. This seems the ideal solution for those who are struggling to find suitable office space at a reasonable price, and yet require a presence to drive their business forward.