Property Agent DTZ have revealed that The West End is the most expensive location for office space in London – as well as the world – at £18,701 per work station, a rise of 11% since last year.
This is 1/3 more expensive than Hong Kong, which lies in second place, and eleven times more expensive than Lisbon, the cheapest European market for office space.
Rise in rent costs are due to high demand coupled with lack of supply. Land Securities have taken advantage of these conditions by investing in the City and areas such as Victoria, where there was a significant shortage in office space.
Land Securities, chief executive, Rob Noel, said, “in London, we reached the peak of construction activity in our development programme during the year. Our programme has been sized and timed to deliver highly efficient and technically resilient office space into a supply-constrained market.”
The development by Land Securities saw a significant rise in shares from 52p to 1,363p.
With real estate still being sought after at this rate, Land Securities estimate that office rent costs within both the City and the West End will continue to rise, solidifying London’s position as the most expensive market for office space within Europe.
By: Kirsty MacGregor
News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.