With the announcement by Macquarie to move into one of the biggest office spaces in the Square Mile, doubts about the further availability of prime office space in the heart of London are making the rounds. There has been renewed interest in commercial spaces very recently, showing that the real estate market in Britain in looking up.

Macquarie is an Australian investment banking group, which is held in high esteem across industries because of its stability and success. Its success is proved by the fact that its own finances were stable enough to help its management tide over the recessive economy. This record of accomplishment has greatly added to the company’s credibility.

Macquarie will soon move into about 220,000 sq ft of prime space in one of the largest structures in Drapers Garden, with the Bank of England as its neighbour. This will lock up a substantial chunk of favoured office space for the 20-year period of lease that the finance group has signed up for. The first four years of the lease will be rent-free for the group under the terms of the contract, in a move to encourage more reliable tenants to take up space here (click for desk space London info).

Bloomberg and BlackRock are also said to be looking for good office spaces and are eyeing the Square Mile area in addition to other prospects. Other big groups who have let offices here are Nomura, the Bank of Tokyo and Mitsubishi.

With the increasing demand for grade A buildings, the Square Mile may soon be off limits for new tenants. The fears of impending shortage have prompted property holders to settle for two-tier office space. Increasing rental growth is boosting the popularity of second hand space also.