British land says to the office to enhance the demand for old buildings in London.

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The demand for advanced London offices began to “decline” to the old buildings due to the higher rents in the sky, and less people who work from home and a lack of new real estate, according to one of the largest owners in the capital.

“It has seen a significant rise in” good used space in basic sites “and a sharp decrease in the amount of space available.

Since Covid-19, the tenants have focused on major offices in a narrow way The best quality space In new or newly renewed buildings, they tried to attract employees to personal work.

But Simon Carter, CEO of British Land, said that the market is now turning because a new space has become very expensive and there has been little availability due to lack of construction since the epidemic.

“There is definitely the flowing effect,” he said. “Back to the office is much stronger than anyone expected.

A year ago, hedge fund and market maker A preset of a large office space In the development of British Land on 2 Finsbury Avenue Street for about 100 pounds per foot, about 70 pounds for the square rent, similar buildings were paid only a few years ago.

The rents for this high-quality area now pays from 115 to 120 pounds per square foot, with a few buildings in the market to be busy in the next few years-which forces companies to look at other options.

“This request goes to another place,” Carter said.

The vacancies in the offices fell slightly in two provinces in the center of West End city in London in the first quarter, according to the Costar data provider. The brokers Kushman & Wickfield said that the amount of the used area sitting in the market in the city has decreased by five since 2023.

Most companies want to stay in basic locations near large train stations, but Carter referred to early signs of moving to office areas away from major transport links, such as the development of British Land in Canada Water.

He said he started to see a direction that “if (companies) want a new building and they are more sensitive to prices, they are looking at some emerging sites: Battersea, Strateford, new buildings in Canary Wharf or Canada Water.”

British land On Thursday, she mentioned an improvement in the value of its property through its portfolio of 9.5 billion pounds from the UK offices and retail gardens of 1.5 percent in 12 months to March, according to independent evaluations. The portfolio was strengthened by high rents after several years of evaluation driven by high interest rates.

The company stated that its rents increased by 3 percent on a similar basis, with the basic profit-which raises the effect of changes in property assessments-increases by 4 percent to 279 million pounds.