London office rents "rebound strongly"

Office design news from Morgan Lovell

Published on 12-07-2010

Prime commercial property space in London is beginning to see a recovery in rental prices, one specialist has stated.

Director of City offices at NB Real Estate James Gillett said there has been two consecutive quarters of "strong" growth in this area, which is "without precedent".

He remarked: "We are now seeing [rents] rebound strongly as demand from occupiers recovers and the supply of prime office space dries up."

According to Mr Gillett, the capital has experienced a "rollercoaster ride" in the office interiors market over the last few years, which he claimed is underlined by recent figures from NB Real Estate.

The company revealed office space in the most popular locations in the City cost an average of £53 a square foot in the second quarter of 2010, compared with £47.50 for the same time period last year.

A recent study by Lambert Smith Hampton suggested business blocks in the UK may need to be refurbished to bring them up to the standards expected by today's firms.

Posted by Ian Johnson