London's Office Market Plunged Into 'Rental Recession', Meta Pays $181 Million To End Its Lease
NDTV
Jefferies estimates that utilization of the city's offices has fallen 20 per cent since the end of 2019 as remote and hybrid work has flourished.
London's office market is suffering an office 'recession', as empty spaces across the UK's capital hits a 30-year high, financial services company Jefferies said in a note. The New York-based firm said that there has been a 20 per cent 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, CNBC reported.
"Retail was technology's first casualty and we think offices are next. Utilisation has shrunk and landlords are losing pricing power as tenants offload surplus space," the analysts said.
The analysts told CNN that London offices were last this empty in 1993 when the UK economy was in recession and its real estate market had crashed.
