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Google and Royal Dutch Shell Looking for Office Space in London

Guy Taylor, Property agent of Cushman & Wakefield stated that companies like Google and Royal Dutch Shell are actively looking for viable commercial property in London to set up their offices. While Google requires nearly 145,000 Sq ft of office space, Royal Dutch Shell requires nearly 220,000 Sq ft of office space.

The two companies are joined by Centaur media, a publication house and Aon Corp, an insurance broker, who are also actively searching for offices to rent in London. This demand by big companies has increased the demand by nearly 20% since the beginning of January this year, with companies requiring nearly 9m sq ft of commercial space in London.

This demand of companies was seen earlier this year but there was no action taken in this front, which led property agents to believe that companies were not interested. Moreover, most companies felt that the property market was more inclined towards the occupier and hence people wanted to wait a while before investing or buying new commercial property.

However, this present demand from Google, Royal Dutch and other leading big companies has led to an increase in the actual occupancy rates of commercial property by nearly 65%, which is again a marked increase from the figures of the second quarter. Experts state that the second quarter of 2009 marked an all time low in terms of rents collected in the past ten years.

This increased demand for commercial property has definitely improved the market value of leading London landlords and owners like Hammerson, British Land and Land Securities.

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