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Commercial Property News
Optimism 'emerging' in London commercial property market
Signs of optimism are beginning to return to the European commercial property market, with London leading the way, a new report has concluded.
Jones Lang LaSalle's European Property Clock for the fourth quarter revealed that the British capital is the first market where the business property sector has reached the end of its decline, with the first quarter of 2010 expected to bring an increase in prime rents.
Across Europe, office yields currently stand at an average of 13.6% below the level recorded a year previously, while demand for office space rose by 28% during the three months to December 2009.
Chris Staveley of Jones Lang LaSalle explained that the research emphasises the different rates of recovery across the continent.
"What is worth highlighting is the extent to which centres have moved in the final quarter, with London, Oslo and Warsaw no longer expecting rental declines," he remarked, adding that some markets will be entering the rental growth phase "well ahead" of prediction made six months ago.
The findings come after the real estate investment firm released a report suggesting that carbon output and energy efficiency are set to have a greater influence on commercial property values.
Jones Lang LaSalle's European Property Clock for the fourth quarter revealed that the British capital is the first market where the business property sector has reached the end of its decline, with the first quarter of 2010 expected to bring an increase in prime rents.
Across Europe, office yields currently stand at an average of 13.6% below the level recorded a year previously, while demand for office space rose by 28% during the three months to December 2009.
Chris Staveley of Jones Lang LaSalle explained that the research emphasises the different rates of recovery across the continent.
"What is worth highlighting is the extent to which centres have moved in the final quarter, with London, Oslo and Warsaw no longer expecting rental declines," he remarked, adding that some markets will be entering the rental growth phase "well ahead" of prediction made six months ago.
The findings come after the real estate investment firm released a report suggesting that carbon output and energy efficiency are set to have a greater influence on commercial property values.
Mon, 1st Feb 2010