Firms shun owner-occupation in City
Business and professional services firms occupy around one-fifth of total office space in the City, according to analysis of office ownership and occupation this year in London's Square Mile.
Most of the Big Five’s offices in London may be outside of the City but business and professional services firms occupy 18.9% of core properties and 19.2% of fringe properties, the survey by Development Securities found.
However most of the property is rented – the firms own just 0.3% of the stock, a figure that is actually in decline.
Insurers on the other hand own 31.5% of the total space.
With owner-occupation now accounting for 12% of core stock and 14% of fringe space, Development Securities said some City-dwellers could benefit.
‘Dampened occupational demand could push down rents, depressing investment values and threatening loan portfolios – with the poor performance of real estate equity and debt further depressing financial markets,’ the report concluded.