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Public sector pay calls are ‘unaffordable’ ILARIA GRASSO MACOLA
CITY STANDS TALL LONDON OFFICE DEMAND ‘INCREDIBLY ROBUST’ DESPITE RISE OF HYBRID WORKING
MILLIE TURNER DEMAND for office space in central London remains “incredibly robust” despite the rise of hybrid working and a deteriorating economic outlook, new figures reveal. Uptake of central London offices surged 63 per cent in the first nine months of this year, in comparison with 2021, according to data from BNP Paribas Real Estate shared exclusively with City A.M.
The British capital experienced the second highest spike in office take-up in Europe, with Madrid and central Paris registering a 33 per cent and 27 per cent increase in office uptake respectively. Only Dublin saw a bigger increase. “While this trend is evident throughout key cities in Europe, it’s no surprise that demand in London has seen such a sharp recovery,” James Strevens, head of City leasing at BNP Paribas Real Estate, said. “As one of Europe’s largest urban
economies, it remains hugely competitive on the world stage, attracting occupiers to its highly skilled talent pool, leading legal and regulatory systems, and influence over culture and arts.” It is the latest sign that the uptick in remote working has failed to completely kill off office life, with the vacancy rate in central London standing at less than nine per cent at the end of the third quarter. The vacancy rate in the Square Mile is slightly higher at 11.4 per cent.
“Despite the hybrid working revolution, and some occupier consolidation, overall demand for office space has been incredibly robust this year,” Ben Thomson, head of tenant representation at BNP Paribas Real Estate, said. “Occupiers are clear in what they want in a post Covid-19 world: amenity rich spaces to retain and attract talent and clients, sustainable buildings which support their ESG ambitions and prime locations close to transport hubs.”
INCREASING public sector workers’ salaries in line with inflation is simply “unaffordable”, transport secretary Mark Harper said yesterday. “We want to try and give all the workers in the public sector who work very hard decent pay rises, but they can’t be inflation-busting pay rises,” he told Sky News’ Sophy Ridge on Sunday. “There simply isn’t the money to pay for those given the context. “Private sector pay rises have generally been settled below the level of inflation, which I accept is difficult for people,” he added. Salaries have been the focal point of the long-running dispute between rail unions and train operators. Following his meeting with RMT boss Mick Lynch last week, Harper said talks between the two sides were progressing. The rail strikes announced for December and January are still set to go ahead, which are likely to disrupt the hospitality and retail sectors’ busiest trading period. Mark Harper, transport secretary
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