Firms seeking new large London offices in the City are taking space that is less than a four minute walk from a tube or train station, aiming to make post-pandemic commutes as ‘pain-free as possible’, research published on Monday shows.
Property consultancy Savills looked at office lettings of 100,000 square feet and above in the City of London in the last three years. It found that the average distance between an office and nearest station is a three and three quarter minute walk. Among the deals featured was law firm Linklaters signing for a new HQ at 20 Ropemaker.
Location, which was already important pre-Covid for property decision makers, continues to be a priority, Savills said.
It added that since 2021 a major requirement for companies acquiring ‘prime’ space in the City of London includes roof terraces, with the company reporting a 14% uplift on rents on offices able to offer private terraces. Meanwhile, offices with a strong amenity provision and ‘green’ credentials achieve up to a 27% premium on rents.
Jon Gardiner, the firm’s head of central London office leasing agency said: “Demand is seeing a growing divergence between the very best space where rents continue to climb, and everything else. To market a building as simply ‘Grade A’ in 2023 is no longer enough.”
Research earlier this year found a number of businesses are taking longer to sign deals as they decide on how much space they need and how best to attract staff to headquarters, even if they are only in for part of the week as hybrid working is embraced.