INDUSTRY NEWS

London office space leads European rental market recovery

According to a report on European property indicators, the cities that are leading the way in rental growth are commercial office space in London, Paris and Moscow.

Propertyweek.com reported that almost all cities involved in the survey showed rising or stable office rents in the final quarter of 2010.

The highest investment activity was recorded in the fourth quarter since before the stock markets crashed in 2008. Despite the growth investors are still concentrating their efforts on prime, long-lease assets with strong covenants.

European research associate, Alexander Colpaert, said: “On a year-on-year basis, Moscow recorded by far the strongest rental growth in Europe as at quarter four 2010, followed by London, Paris and Stockholm.

“In the office and industrial sector one can generally speak of a positive sentiment as market fundamentals are improving, but the retail sector shows a much more mixed picture. Occupier demand should hold up across the sectors as the economic recovery continues, albeit at a relatively sluggish pace for this stage of the cycle, he commented.”

Commercial property news brought to you direct from DeVono Cresa, experts on the London commercial property market.

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