Commercial property rents 'could rise'

Office design news from Morgan Lovell

Published on 26-08-2010

Rental incomes for office interior and commercial property space in the UK could be set to rise in the months ahead, it has been claimed.

Michael Rhydderch, partner at Cushman & Wakefield, said there is a probability that commercial office rates will continue to rise in the short term, although it is unclear at present whether the sector has sufficient momentum.

He commented: "A lot of people do see the potential for rents to rise, therefore justifying the prices that some people are currently now paying."

Mr Rhydderch added that the UK market is "more volatile" than its European counterparts and therefore any changes will be seen to a greater extent.

According to the latest Savills Commercial Development Activity Index, UK commercial property activity in July rose by 0.6 points minus 3.4 per cent in June. However, this remains below the long-run survey average of 5.3 per cent.

Posted by Ian Johnson