The cost of advertising in London is rising rapidly and is likely to get more expensive in the run up to the Olympic games.
This is according to Land Securities, the owner of one of the world’s most famous advertising hoardings – Picadilly Lights – and one of London’s top property developers. With two-thirds of their commercial property portfolio located inside Greater London, Land Securities are pleased the demand for London advertising space is increasing and are excited to see what the Olympics may bring to the area.
Land Securities, chief executive Francis Salway said recently: ‘The level of rent that we have agreed reflects the focus that there will be on the Piccadilly Lights in a years time. Visitors will be spending a lot of time in central London.’
The company is so confident in London’s economy that they are to begin building new office and retail space without having pre-let any of the space. Retail developments do require confirmed interest from shops, but there has been sufficient attention from Primark, Sainsbury’s, John Lewis and others to justify new space. Mr Salway declared: ‘The outlook for development in London remains attractive and despite the mixed messages in the retail sector, our leasing activity demonstrates that the stronger retailers are looking to take new space.’
Despite the recent bad news concerning a number of large retail company’s entering administration, Mr Salway remains positive, saying: ‘We expected that retail insolvencies would be slightly higher than they were in 2010. In this quarter they came in slightly lower.’
The London commercial property market has emerged pretty much unscathed from the economic recession and with the 2012 Olympics now under a year away, it is hoped that the London commercial property market will receive a further boost. It is hoped worldwide organisations will wish to be affiliated with the games and as a result will take space in some of the London’s vacant commercial property.
