According to a report on worldwide office rental market, London’s West End is the most expensive market for office space, for the third year running. Rent prices in the West End have increased by 4.6% over the past year.
The research from Cushman & Wakefield also revealed that Hong Kong remains second, whilst New York comes in third for office rental space.
It was also revealed that globally office rent rose by 7% over the past year.
Head of London markets for Cushman & Wakefield, George Roberts, stated: “With a true global appeal, London continues to attract major international businesses looking to be based there, often using it as a springboard into Europe.”
He added, “As economic conditions in the UK further outperform, there will be heightened demand for London office space in 2015 from across all sectors. With supply heading downwards, further rental growth is expected.”
The global report has re-positioned major cities as the most important in in the office market hierarchy over smaller outside markets.
It has also confirmed that office tenants will potentially face more geo-political risks. This will enable tenants more flexibility when it comes to agreeing on conditions of the lease and rent prices, especially in places with oversupply.
By: Kirsty MacGregor
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