Login to UKBP
Commercial Property News
Jones Lang LaSalle predicts regional office market improvement
Office rents in regional commercial property markets outside of London are set to recover, according to one real estate agency.
Jones Lang LaSalle, in its new Office Market Conditions Across the UK report, said that the sector will recover in parallel with the economy, but gains are more likely to be driven by drops in supply rather than an increase in demand.
The firm has forecast that availability of business property across the UK will be limited by 2012 due to construction of fewer new developments, which could help rents for prime property to grow by 2011.
However, head of Jones Lang LaSalle's National Offices team James Finnis observed that government spending reductions could limit the of commercial property for rent.
"UK take-up outside London was heavily supported by the public sector in 2009 but as the government seeks to cuts costs this is unlikely to continue," he remarked.
Last month, the company predicted that energy efficiency will have an increasing influence on office rental prices over the next decade.
Jones Lang LaSalle, in its new Office Market Conditions Across the UK report, said that the sector will recover in parallel with the economy, but gains are more likely to be driven by drops in supply rather than an increase in demand.
The firm has forecast that availability of business property across the UK will be limited by 2012 due to construction of fewer new developments, which could help rents for prime property to grow by 2011.
However, head of Jones Lang LaSalle's National Offices team James Finnis observed that government spending reductions could limit the of commercial property for rent.
"UK take-up outside London was heavily supported by the public sector in 2009 but as the government seeks to cuts costs this is unlikely to continue," he remarked.
Last month, the company predicted that energy efficiency will have an increasing influence on office rental prices over the next decade.
Fri, 19th Feb 2010