2015 has seen the best quarter for London office lettings since the financial crisis. Record breaking rent costs, due to growing demand for office space in the capital, are responsible for the real estate market’s success.
With 2.4m sq. ft of office space having been let within the first 3 months of this year, lettings are 34% higher than this time last year – according to Cushman and Wakefield.
The city has seen the biggest growth, with Deloitte striking the largest deal at 270,000 sq. ft. of pre-let space at 1 New Street Square. Cushman – themselves put up for sale by the billionaire Agnelli family for £1.35bn – saw quieter activity in the West End due to vacancy rates lowering to as little as 2.3%, a 15 year low.
The shortage resulted in Syrian billionaire art dealers, the Nahmads, breaking the UK record for the highest rent ever paid for a London office, at £185 per sq. ft. The space, of the 8 St James’s square development, is on the top floor of the property.
Cushman and Wakefield, head of West End office Agency, Andy Tyler, said, “It is clear that rising rents and scarcity of product are leading to a redistribution of occupiers across central London, particularly West End occupiers.”
By: Kirsty MacGregor
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