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GVA launches timely report on London's workspace

Monday, 13 March 2017

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Occupier adage moves from Location, Location, Location to ‘LUCK’.

Leading UK real estate adviser, GVA will launch the first report in its ‘London: Where we work’ series at MIPIM, which looks at the changes in the type of occupier in central London, the type of space they require and their location preferences, as well as changes in the city’s submarkets and the drivers underpinning them.

Patrick O’Keeffe, Senior Director and Head of London Agency and Investment at GVA will present an overview of the report on the London Stand at MIPIM on Tuesday 14 March, 1030 CET.

London’s workspace offer has changed dramatically in recent years and is now more diverse than it has ever been. Whilst London has grown geographically, due partly to increased investment into transport infrastructure, its labour market has also increased creating a major challenge for the city’s office supply.

GVA’s first ‘London: Where we work’ report notes that with the physical constraints of the core markets an increasing proportion of development is occurring in the previously considered fringe areas, resulting in a rise in both the quantity and quality of their office stock. This has given occupiers a more diverse choice in where they locate.

Patrick O’Keeffe, Head of London Agency and Investment at GVA comments: “Where once tenant demands were purely based on location, these now come down to LUCK: location, utilisation, cost and knowledge. Partly as a result of London’s evolving occupier base, the capital is seeing a considerable change in the nature of office demand, which in turn is influencing the characteristics and drivers of central London’s mainstream and submarkets.

“Markets and price are still important, especially where there is clustering of like-minded business, but occupiers are much more specific about the type of space they require, and how it can be used – whether in terms of working their building more intensively, or requiring different types of space for different activities.”

He adds: “What is clear is that whilst the central London office market will see changes and potential uncertainty, London will continue to evolve and cater to the demands of the many businesses that make the capital what it is.”

The next report in GVA’s ‘London: Where we work’ series will focus on London’s changing office supply and its development pipeline and how supply is changing to accommodate demand. The report is due for release in summer 2017.

For further information on ‘London: Where we work’, please contact Daryl Perry, Associate, Research at GVA on 0207 911 2340 or email daryl.perry@gva.co.uk or visit www.gva.co.uk/research.