Space race fuels resurgence in London offices

Demand for offices in London has surged by nearly 40 per cent over the past year, as ambitious companies look to expand on the back of a resurgent economy, according to new data.

Adam Landau, property director at the commercial estate agent DeVono, which gathered the numbers, said: "The evidence we have of economic recovery has been directly seen via significant increases in instructions. With expected market rental growth, many businesses are future-proofing their businesses for the next five years."

While 90 per cent of the skyscraper space in The Shard, on the South Bank, is still unoccupied, and building projects in the City have stalled due to lack of funding, commercial real estate in the City's borderlands – such as King's Cross, Clerkenwell and Shoreditch – is in high demand.

Mr Landau believes that the interest in non-traditional locations has been driven by a search for better value.

He said: "The demand in bordering areas is due their lower occupational costs but almost equal quality compared with the traditional London office locations such as the West End and Square Mile.

"The City has kept a very corporate identity, while all areas directly around it have benefited from being a little alternative."