Skyscrapers in the Canary Wharf financial, business and shopping district in London, UK.
LONDON — London's office market is in a "rental recession," according to financial services company Jeffries, who reported that vacancies in the capital's business hub had hit a 30-year high.
Jeffries analysts estimated there had been a 20% contraction in London office usage as working from home and hybrid working, as well as a move toward green offices, continue to be a priority.
It said the level of vacancies was also above the tipping point at which rents would typically start to fall, apart from in the case of sustainability-focused buildings.
Flexible, co-working and serviced offices take up around 9% of London's space and have moved into some of the vacant spaces, Jeffries said.
Persons:
Jeffries
Organizations:
LONDON
Locations:
Canary, London