London Commercial Market hit by Business Failures

Vacancies in offices in and around London could be the result of a harsh economic climate, with a number of businesses in the country closing. According to figures from the Office for National Statistics (ONS), there were 55,100 business failures in the capital during 2009....

Vacancies in offices in and around London could be the result of a harsh economic climate, with a number of businesses in the country closing. According to figures from the Office for National Statistics (ONS), there were 55,100 business failures in the capital during 2009.

This represents a significant increase on the 50,575 "business deaths" recorded the year before, the Evening Standard reports.

In total, 13.7 per cent of all London businesses collapsed in 2009 and the rate of failures is equivalent to just over 150 a day. And because "business births" have been overtaken by the number of those succumbing, commercial property management firms may be struggling to find organisations to take up the vacant spaces.

The ONS data shows that the worst affected area of the UK capital was Westminster where 6,475 failures were reported over the course of the year, followed by Camden, which saw 3,140 companies go under.

Meanwhile, recent research conducted by Colliers International found that foreign investors are showing more confidence in commercial property than they did six months previously.

- Friday 03 December 2010

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