According to Reuters, the amount of office space in London lying empty has risen by ten percent since the beginning of 2009, meaning that the number of London offices that are immediately available to rent has risen to in excess of 10 million square feet.
There are many advantages for a business looking to lease office space in London and there has never been a better time to find a real bargain.
The reason for this surplus of available London office space can be traced back to the beginnings of the current economic downturn.
As banks and other major financial institutions saw the potential results of surfeit lending, they began to downscale and streamline their workforces.
As it became no longer viable to have such small numbers of staff in such large spaces, they looked elsewhere for office property or have taken out short-term leases in favour of long-term contracts.
In response, landlords decided to reduce the cost of office rental in London in a bid to prevent their properties from standing empty.
Many even offered substantial deals in a bid to court custom, such as extended rent-free periods and capital contributions.
The Investment Property Forum's European Consensus Forecast has predicted that rents will continue to be driven down further, by as much as 26.
6%.
They also predict that there will not be much room for recovery until around 2011, when the beginnings of a recovery are expected.
While this is certainly bleak news for landlords and freeholders, the good news for business-owners is that the market for London office space has turned in favor of the tenant.
Grade A office space (the industry's term for the best of the best) has already fallen as low as £45.
00 .
0 per square foot, the lowest since 2004.
These figures, paint a picture where business-owners will be able to undertake office rental in London for unprecedented prices, allowing them to take advantage of all the benefits of a London office space.
The Royal Institute of Chartered Surveyors has recently raised another factor that could force the prices of renting London office space down even further.
It is their belief that the growth for office rental in London could fall to 'sub-inflation' levels by the end of 2009.
The reason behind this is that, with so many offices threatening to become unoccupied, there is also an excess of supply over demand.
Once again, this looks set to work in the favour of the tenant.
Add this to the fact that there are over 12 million square feet of office space being built in the capital and the future for landlords looks pretty grim.
To take advantage of the low prices and the prime locations, prospective tenants would be well advised to hire the services of a commercial property acquisition agent.
Using their knowledge of the property market, they will have the best informed knowledge of the locations that are going to offer the best value for money and their negotiating power gives tenants the opportunity to push falling prices down even further.
While the recession may be spelling bad news for certain pockets of the London office rental market, it is offering opportunities for business-owners that, ultimately can only help to improve the state of the economy at a later date.