Demand for Office Space in Holborn so far this year has been steady and actually slightly ahead of the same period in 2016 based on our data. The mix of tenants interested in Holborn as a location also makes interesting reading:
Demand for Office Space by Industry Sector:
- Professional Services – 28%
- Charities and Not for Profit Organisations – 8%
- Recruitment – 12%
- Media & Marketing – 23%
- Technology – 16%
- Other 13%
Source – www.holbornoffices.london
We have also noticed a trend for people asking for more flexible Leases or commitments, which has led to an increase in serviced office demand. Whether this has anything to do with a drop in confidence for the economy or it may be a continuation of the trend a lack of interest in sign long term Leases by most companies. Although Landlord’s remain keen to offer longer lease terms with a ten year Lease with a possible break clause at the fifth year being their preference.
The Holborn office market, geographically is wedged between the City of London as well as the West End markets of Soho and Covent Garden. These two locations have very different dynamics driven by different occupier types as well as building style and construction. There are also difference when it comes to how generous Landlords are when granting rent free periods or other incentives to incoming tenants.
The City is currently 60% more generous than it’s West End counterpart. So when negotiations start with a potential new Landlord, tenants are well advised to position themselves as a potential City of London tenant than a West End occupier, as you’ll find far greater rewards for doing so.
Grade A Rents : £75.00 per sq ft per annum exclusive of VAT,
Grade B Rents: £55.00 per sq ft per annum exclusive of VAT
Short Term/ Sub Let : £47.00 per sq ft per annum exclusive of VAT
Hopefully if you are looking for office space in Holborn this spring this quick update will prove useful. Please feel free to give us a call to discuss an office search you may have or any questions about Holborn office rents or market conditions.