Large companies and organisations are driving "a hard bargain" when it comes to securing commercial property in the capital, according to new data.
New officials have revealed that take-up of office space in central London rose dramatically in the first three months of 2013 compared to the same period a year before, from 1.5 million sq ft to 2.1 million sq ft.
Industry analysts have suggested that prevailing market conditions favour large businesses seeking to strike bargain deals with landlords.
Guy Taylor, head of the West End agency at Cushman & Wakefield, argues that there is plenty of value in the market for prime locations, which accounts for the boost in office space take-up. Mr Taylor said: "Occupiers are increasingly broadening their search criteria in an effort to find perceived good-value office accommodation. Larger occupiers, in particular, are taking the opportunity to drive a hard bargain and secure maximum value from landlords."
Also behind the boost was Google’s acquisition of an 800,000 sq ft space in Kings Cross Central in Camden. At 1.3 million sq ft, the site, which will be the online giant's UK headquarters, accounts for around half of the space sold in the West End in the first quarter. Another district that saw an upwards trend was the City and Docklands, where 815,000 sq ft of commercial property was taken up, a 13 per cent rise from this time last year.
Analysts hope that these positive trends will continue for the rest of 2013 as investors become more attracted towards the commercial property sector.