Low supply to push London office rents up in 2010

Prime rents in London's City and West End office markets will return to growth in 2010 thanks to flourishing global stock markets and a rebound in tenant demand this summer.

A sudden drop off in speculative office developments due by 2012 and smaller-than-expected occupier distress in 2009 supports forecasts of a 4 percent rise in prime City rents to 44 pounds per square foot and a 3 percent rise in West End prime rents to 67 pounds per square foot in 2010.

City rents, down more than a fifth in 2009, are expected to rise by 37 percent to 58 pounds per square foot by end-2012. West End rents, down 30 percent this year, are set to rise by 42 percent to 92.50 per square foot over the same period.
Reuters