London’s empty office space hits highest level in 15 years

Bloomberg

Office availability in central London is at its highest level in more than 15 years, the latest sign of how the pandemic-driven shift to remote working is upending demand for the commercial property.
Availability was close to 31 million square feet in August 2022, according to real-estate data and information company CoStar. That’s the equivalent of about 60 Gherkin skyscrapers, and is up 51% from the 20 million square feet that was available at the end of 2019. Roughly 5 million square feet is marketed by tenants for sublease.
The last time there was close to this much empty space, office values plunged, causing billions in commercial real estate loans to sour. Availability in the aftermath of the global financial crisis peaked at 28 million square feet in mid-2009, according to CoStar, whose dataset goes back to 2005. The amount of square footage available in the capital has continued to rise this year, although at a slower pace than in the previous two years, CoStar found.
The data is also likely to worry those bosses who have been pushing for a widespread return to the office. Right now less than half of workers in the UK’s banking sector go into the office on an average day, and less than a fifth of insurance sector employees do so, according to a survey by consultancy Advanced Workplace Associates.

Young People in UK Left With $177 a Week After Bills and Taxes
Young people in Britain have seen their disposal incomes shrink by more than one fifth, according to figures from Asda Group Ltd. that highlight the UK’s deepening cost-of-living crisis.
Asda, the country’s third largest supermarket, said that under-30s are being left with just £150 ($177) per week on average after paying taxes, rent, groceries, transport and essential bills. July’s number was down 21.6% on a year earlier.
Disposable incomes for all households were down 16.5% in July, Asda’s monthly consumer survey showed, at £204 per week — the second biggest decline since the grocer started the survey in 2008.
Soaring inflation, including high energy costs, has forced households to pay more for essential items such as food and gas bills. Such expenditure rose 12.5% for those under 30, the survey said.
Asda, considered to be the most value-focused of Britain’s “big four” grocers, said nearly 90% of the people it surveyed are worried about the rising energy prices and inflation, underscoring widespread concern as Britain heads into the colder months.
Elevated gas bills in the UK could push many households into energy poverty.
July’s inflation data showed that price pressures are moving beyond energy, with food being the biggest driver.
Asda said it has moved quickly to get cheaper products on to shelves in response to soaring prices, tapping a shift to store-owned labels over branded goods.
Rival budget chain Iceland Foods said this month it would allow shoppers to pay for their food in installments.
Grocery price inflation has reached 11.6%, retail data business Kantar said this month.