London’s commercial property market has experienced an unexpectedly swift recovery, some nine months earlier than expected, a new report suggests. Although the research cautions against extrapolating the trend too far, it nevertheless notes that rents have begun to rise and capital values have soared 11 percent since July 2009. Office space has enjoyed a particularly strong recovery.
Capital values are still approximately 40 percent below what they were at the height of the boom. However, on average, London office space rents have risen to nearly £50 per square foot in Q3 of 2009, up 15 percent. In the West End, where rents are more expensive, no increases have been apparent, but take up has improved.
The office sector has improved far better than retail or industrial, though these are expected to recover in the months to come as the lack of new development puts a squeeze on occupiers.
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