London firms remain keen to investOctober 23rd, 2012 Category: Building Management
Many London-based companies are not letting Britain's economic difficulties put them off investing in new office space, a new report has noted.
According to Lloyds Bank, ongoing problems in the economy are denting confidence in the country's commercial property market.
However, firms in the capital appear to be more willing to look at future investment opportunities than their peers in other parts of the UK. Indeed, four per cent of medium and large businesses in the capital plan to invest soon, because current valuations are deemed to be "attractive".
As a result, demand for facilities management specialists in the capital could be set to increase in the near future.
Figures from Lloyds Bank show that eight per cent of businesses across the UK believe conditions in their sector will improve in the near future.
However, nearly one in three medium to large companies in London hold this view, a reflection of the differences in sentiment around Britain.
Much has been made of the strength of the capital's economy and commercial property market in the last few years.
Even at the worst depths of the recession, conditions in the city seem to have held up, while London has proved especially popular with foreign investors during this period.
The latest data is a further indication of this trend and a clear demonstration that London is not only surviving, but thriving amid the worst economic crisis in living memory.
As a result, investing in London could be a good idea, as the city will be well-placed to do well when the UK's economic recovery begins in earnest.
Lynda Shillaw, managing director of corporate real estate at Lloyds Bank Wholesale Banking and Markets, commented: "Businesses within the commercial real estate space will be deploying their capital selectively as they manage their portfolios during a period of very little growth within the economy.
"Despite the pessimism there is a clear appetite for investment into the sector driven by major businesses and London based companies."