London’s reputation as a commercial property A-lister was further reinforced this week, as research by CB Richard Ellis (CBRE) found that almost two thirds of major international companies have an office presence in the capital.
The commercial property firm’s analysis places Hong Kong top of the commercial property pops with 68.2% of major international companies having a presence there. Singapore (67.5%) follows, Tokyo (63.9%) is third and London comes in at number four with 63.2%. The only other European cities in the top ten are Madrid (eighth) and Paris (tenth). So while things still look bleak in the economy, as a recovery has not quite gone according to expectations so far, we can take comfort in the knowledge that London is still a powerhouse on the global scene.
The report, Business Footprints, looked at 280 organisations in 101 countries, who on average conduct business from offices in 33 countries and 43 cities.
London’s prominence in the banking and finance world is reaffirmed, with 92% of companies from this sector being present in the capital, making it the joint most popular, along with New York.
London is top choice for professional services providers, including law, accountancy, management consultant and real estate firms, and is held in similarly high regard by media technology and telecoms companies, ranked equal with Tokyo as the most desirable place at 79%.
The pharmaceutical and healthcare sector tends to spread its presence across the most countries, whereas the automobile and parts sector is found in the least.
Analysts noted that ‘the expansion of Asia’s banking and finance firms represents an opportunity for London’ and its commercial property, pointing to reports that the Bank of China and the Industrial and Commercial Bank of China sought ‘significant requirements for space in London over the past 12–18 months’. This comes with a caveat: ‘the economic downturn has presented a number of challenges which need to be overcome if London is to retain its global status, particularly as it faces sterner competition from the rapidly growing cities in Asia.’
