Recent figures released by the Knightsbridge based lettings and sales agency, WA Ellis, have suggested that the cost of prime commercial property in London, rose substantially during the last month.
Added to this, new statistics released by leading property agent, Knight Frank, have revealed that office space in London’s West End, is some of the most expensive in the world.
The company’s Global Real Estate Market’s report has stated that the cost of renting office space in the region is now around £85 per sqft.
Growth has also been reported in London’s main financial district, with rental costs of £55 per sqft reported.
The report stated that: ‘At the start of 2010, prime office rents were still falling in a significant number of the continent’s markets, but by the end of the year, rents had either stabilised, or began to recover in most markets.’
‘The central London office market has led the recovery in demand and rental values. Take-up improved strongly in 2010, largely as a result of increased demand from the financial sector. London saw the most dramatic rise in prime rents in Europe.’
Quite surprisingly office space in London’s Docklands rose by just 4 per cent, making it one of the more affordable places to rent in London at the moment.
Dan Bayley, head of Central London, at BNP Paribas Real Estate, believes there is room for even more commercial property growth in London, saying: ‘Following an extremely busy 2010, the City is now seeing occupiers undergo a period of consolidation; and whilst this does suggest that the year has got off to a slower start, a number of underlying positive trends are still evident.’
‘Across Central London as a whole a number of new requirements are emerging within the market and there are some significant pre-lets under discussion. The imminent completion of a number of new schemes within the City has also led to a waiting game in which occupiers are keen to see who is going where and what they are paying before they commit.’
