Office space in London is widely regarded as a reliable investment, with London obviously placed high on the list of worldwide financial giants. Companies are taking advantage of the high professional status accrued from utilising commercial property in London. To some, commercial property in London simply denotes a company is among the leaders in international commerce. This report gives insights into the key driving factors behind the phenomenon: London’s business and retail sectors.

The FTSE 100 companies unsurprisingly account for over 80% of all transactions on the London stock exchange. A review of the top 100 companies globally reveals office space in London is highly desirable, even with a corporate HQ many thousands of miles away. London ranks highly for banking and finance, with over double the market share for currency trading than any other capital contender. The Credit Suisse Global Investment Yearbook showed that in 2009, the UK offered a better rate of investment return than Germany and commanded the largest world stock market among all individual competitors bar the USA. Unsurprisingly, London, featured second on the Knight Franks Wealth Report’s Top 40 cities list in 2010.

London’s retail market developed a healthy reputation for going against the trend in recent years. While sales in other parts of both the UK and Europe dramatically declined, I 2009, retail sales actually rose by over 8% during the Christmas period. West End retail sales enjoyed a staggering 10% year-on-year growth during the 12 months prior to June 2010. Initiatives between West End retail consortiums and the Metropolitan police have helped by driving down crime, keeping the streets cleaner and providing visitor guides in key shopping areas.

There are over sixty-five 5 star hotels in the capital, with the rise of both the opulent ‘grand hotels’ mirrored by the growth of the smaller luxury boutiques. The lifestyle needs of city workers are amply catered for with longer term luxury apartments. International visitors from Russia and the Middle East are also reported to help keep the capitals retail and services economy healthy.

The London commercial property market responded with an increase in overseas companies interested in London premises. Property transactions worth a reported £2.78 billion took place within the West End, City and Docklands areas of London between April and June 2010. This reflects the fourth consecutive quarter of growth for office space.

Geographically, London is the gateway to Europe, with flights to major European capitals via business class from London City airport. London Heathrow flies to over 90 countries, located 15 minutes by train from Paddington station. London Gatwick serves 300 destinations in over 90 countries and is 30 minutes by train from Victoria station. London Stanstead is 45 minutes by train from Liverpool St station and flies to over 30 countries. London also has easy access to direct freight liner routes to all major trading economies.

All of these factors are reasons why international companies are choosing to rent both office space in London and other types of commercial property in the capital. Since rental pricing is increasing amidst a shortage of quality premises in the capital, it is vital to work with a long-established, specialist commercial property lettings agent. If current predictions prevail, this will be especially true for companies looking to share in the success of London’s flourishing retail sector.