Battle For Quality London Office Space?

According to the Telegraph, multinational companies such as Google, Royal Dutch, Debenhams and Bloomberg are competing over office space for their headquarters.

They are faced with limited options and the prospect of missing out on their first choice because cash-strapped developers pulled the plug on new developments in light of the financial crisis.

Large and high-quality space is attracting increasing competition, which escalated over Christmas when BlackRock, the fund manager, gazumped Australia’s Macquarie to occupy one of City’s largest developments, the 270,000 sq ft Drapers Gardens, which is owned by Canary Wharf Group and Exemplar Properties. Sources say BlackRock’s overall bid was 30pc ahead of Macquarie’s agreement with the landlords.

According to Knight Frank there are estimated to be only six new City buildings which are completed or due to be by 2012 that have more than 200,000 sq ft of space.