After the pandemic, offices are filling up again, as companies require employees to return to stationary work more often. This has led to an increase in rents for the best premises in the UK. However, by the end of last year, the volume of facilities under construction had dropped to 10.1 million square feet, the lowest since 2016, due to high construction and financing costs.
According to Knight Frank, demand for new large offices in London is 20% higher than the long-term norm, and the agency predicts an impending supply shortage. Almost a third of tenants remain in their places due to lack of choice or high prices. As the representative of Brookfield noted, the problem with the shortage of premises is not solved quickly.
Developers who built new office buildings after the pandemic benefited from the lack of competition. One example is London's One Leadenhall tower, where the rent rate on the top floor reached a record 160 pounds per square foot for the City area. The building, built by Brookfield, is fully leased.According to Cushman & Wakefield, in 2025, investments in office construction in Europe increased by 14% compared to the previous year, amounting to 52 billion euros, but this is only half of the 10-year average. At the same time, 52% of all rented offices in Europe, the Middle East and Africa belonged to the upper class segment. Occupancy in this segment decreased to 3.5%, while the overall rate remained at 9.8%.
Source: Cyprus Mail
