London office market strengthened in last quarter


A new report has found that rents for London office space have now stabilised, prompting a wave of new lettings. Some 40 percent of the year’s lettings took place in the final quarter of 2009, demonstrating renewed confidence in the market and the expectation that rents are now likely to begin rising.

A number of major transactions at the end of last year and the beginning of 2010 have renewed optimism, and take-up of new office space for the October-to-December period stands at over 2.5 million square feet – the best result for over a year.

The news suggests that further take-up is likely in the near future, as companies requiring office space seek to take advantage of rents and concessions – such as the rent-free period currently being offered as part of many new deals – that will not be around much longer.