London’s West End has regained its place at the top of the league tables for the world’s most expensive office space. The pressures of the credit crunch on commercial property the world over meant that some highly overpriced areas – London among them – have been hit especially hard, leading to a sharp fall in the value of buildings and corresponding drops in rent levels as landlord’s struggled to fill them during the recession.
For a while, London slipped from no. 1 as Tokyo office space inherited the title. Now, the first signs of a tentative recovery in the underlying economy have prompted property investors to reconsider their position in the UK’s capital.
On average, commercial rents across the world fell by almost 8 percent, though certain areas experienced a 50 percent drop, with others cashing in on changing business practices and enjoying a 10 percent boost.