DTZ forecasts office interior rent growth

Office design news from Morgan Lovell

Published on 24-12-2009

End of year predictions by DTZ have revealed office rents are set to increase across the UK over the next five years.

Property Week reported the firm believes office interior rents will grow by 1.8 per cent over the next half-decade, with 2010 predicted show an increase of 0.3 per cent and be the first sector in the UK to return to positive growth.

It noted the retail and industrial sectors are likely to show falls of 0.2 per cent next year.

Tony McGough, global head of forecasting at DTZ, said: "One effect of the crisis was a stalling of the development pipeline and those markets with a limited supply are those forecast to perform strongest when, albeit at very low levels, demand returns."

Elsewhere, Naomi Heaton, chief executive officer at London Central Portfolio, recently noted the capital is likely to witness a boom in property values over the coming months, with prime London office locations set to show significant improvements.

Posted by Ian Johnson.