Knight Frank predicts double-digit rental growth for London office interior space

Office design news from Morgan Lovell

Published on 02-02-2010

Office rental prices could be set to see double-digit growth throughout 2010, according to a new report by leasing agent Knight Frank.

The firm has forecast the capital could be set to witness a boom in demand for prime modern office design space this year, thanks to an anticipated rebound in office uptake following the end of the recession.

However, the fact many developments have been put on hold in recent months could mean there is not enough available commercial property to satisfy this growing demand.

Will Beardmore-Gray, head of City leasing at Knight Frank, said: "We are expecting a supply crunch in 2011, as an inadequate development pipeline collides with strong structural demand and tenants expanding in response to a stronger global economy."

Elsewhere, a survey by PricewaterhouseCooper recently revealed large-scale price declines and the present weakness of sterling have made London one of the most attractive options for office investment in Europe.

Posted by Ian Johnson.