Big businesses upped sticks for the City in 2018 as companies increasingly move further afield to find the best office space, a new study has shown.
Mayfair lost the largest number of businesses renting office space of more than 10,000 square feet, according to analysis by real estate adviser Cushman & Wakefield, with a net loss of 12 firms.
Businesses were enticed by the gleaming towers of the London’s financial district, with a net gain of 32 occupiers for the City.
Cushman & Wakefield’s head of London markets Alistair Brown said this was due to recent availability of office space in the Square Mile.
“An enduring lack of stock in the West End office market is triggering a notable migration out of the area,” he said.
City businesses also showed loyalty to the area, with 53 out of 114, or 46 per cent, of transactions originating from companies already located there.
“Modern businesses are brushing aside the notion of traditional boundaries. Instead, they are moving further afield to secure the right space that meets their requirements and reflects their brand,” said Hayley Armstrong, senior insight analyst at Cushman & Wakefield.
Brown said: “The media and technology sectors should be a key driver in the London leasing market and will continue to fuel the migration and fluidity between London submarkets.”