Over the last twenty years there hasn’t been a better time to find cheaper office space in and around London. A recent report produced by Knight Frank has stated that prices of office space in the south east has fallen by around 15% and will continue falling until the end of 2010. Reuters News Agency reports that empty office space in London has risen by approximately 10% at the beginning of 2009 which converts to about 10 million square feet!

Office rental prices are not expected to bounce back until sometime in 2012, allowing businesses to cost cut their rental overheads. Due to a large oversupply in the areas around the M25 and the M4 corridor, competition amongst landlords is higher than ever, much to the potential tenant’s advantage. We are seeing rent free periods extending over the longest periods ever, as landlords compete to grab tenants.With prices between £19 and £25 around the M25  and £29 in parts of  London such as  Hammersmith there are great deals out there. As such many landlords are discounting the rent of their current tenants in order to entice them to stay and avoid their real estate lying empty.

With the large amount of redundancies being made at the moment, many companies who are seeing their office space go to waste are now advertising to share  there now empty cubicles to help cover building costs.  A good place to look for these available office shares is to start by searching on the internet. Many companies will self advertise in directories such as  thegumtree.com, which carries many adverts in this area. Otherwise contact some office rental agents and tell them you’re interested in any sub-letting opportunities to get an idea of what’s out there. Alternatively, it may be wise to use the services of an office aquisition agent, as they will have current knowledge of prime locations and current price levels. An office aquisition agent should be well informed of the locations you are interested in an be able to negotiate on your behalf.