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Commercial Property News
London offices 'to see double-digit rental growth'
Commercial property in central London will see strong growth this year, with rents at some office space rising into double digits.
This is according to a new report from Knight Frank, which has forecast that a rise in activity in the capital's financial markets will result in more businesses searching for commercial property for rent.
The real estate agency predicted that city prime rents will rise by 19% over the course of the year - taking them to £52.50 per sq ft - while supply of available space will drop by 12% to 10.7 million sq ft, having already declined 9% in the second half of last year.
"I believe recovery for the world economy will lead to increased office demand in 2010," remarked head of central London research for the company James Roberts, adding that growth in the financial markets is "important" for the health of the sector in the city.
Reuters recently noted that the opposite may also occur, predicting that increasing interest in real estate will help banks that currently have loans on the books that are valued at more than the property on which they are secured.
This is according to a new report from Knight Frank, which has forecast that a rise in activity in the capital's financial markets will result in more businesses searching for commercial property for rent.
The real estate agency predicted that city prime rents will rise by 19% over the course of the year - taking them to £52.50 per sq ft - while supply of available space will drop by 12% to 10.7 million sq ft, having already declined 9% in the second half of last year.
"I believe recovery for the world economy will lead to increased office demand in 2010," remarked head of central London research for the company James Roberts, adding that growth in the financial markets is "important" for the health of the sector in the city.
Reuters recently noted that the opposite may also occur, predicting that increasing interest in real estate will help banks that currently have loans on the books that are valued at more than the property on which they are secured.
Thu, 4th Feb 2010