INDUSTRY NEWS

Prime rents to near three figures by 2011

A new report has suggested that West End office space will near £100 per square foot by the end of next year, though recovering the highs of 2007 is still some time away.

Analysts predict that West End office space might reach £98 by 2011. In 2008, as the recession bit the financial sector particularly hard, rents in London’s most fashionable area dropped nearly 30 percent to £85 per square foot.

In the rest of the capital, rents are forecast to rise 18 percent to £56 per square foot. The main reason for the anticipated sharp increase is lack of supply, leading to competition for free space.

In October 2007, Permal Investment Management Services signed a contract for 80,000 square feet of office space at 11-12 St. James’s Square at £140 per square foot – a world record that is unlikely to be beaten for some years.

 

Image: Flickr (Warren H)