Commercial property rents 'to remain flat'

Office design news from Morgan Lovell

Published on 26-02-2010

Commercial property rents in the UK are unlikely to see significant falls or rises over the coming year, it has been claimed.

Jason Sibthorpe, head of retail at GVA Grimley, said the rate of softening in the modern office design space market has fallen in recent months and there is now unlikely to be any large further reductions, with the market looking to stabilise as the UK comes out of recession.

He commented: "London certainly continues to attract a very eclectic mix of retailers both national and international and for that reason it will continue to be resilient."

According to a report published by Cushman & Wakefield earlier this month, average retail property rents declined by just over eight per cent in 2009.

Most of the UK's major cities saw rental falls in Q4, although London bucked the trend throughout the economic downturn and rents have increased to new highs on Bond Street - recording a 9.7 per cent rise over the 12 months.

Posted by Ian Johnson.