Prime office rents rise in London

Office design news from Morgan Lovell

Published on 11-04-2011

Office rents in London's City district have risen by 17.5 per cent in the last year, it has been revealed.

According to a new report by BNP Paribas, rents for prime office space in the area stood at £54.50 per sq ft in the first quarter of 2011.

Furthermore, rents in the popular West End district now stand at £92.50 per sq ft - an increase of 19 per cent year-on-year.

Dan Bayley, head of central London at BNP Paribas Real Estate, said: "The imminent completion of a number of new schemes within the City has also led to a waiting game in which occupiers are keen to see who is going where and what are paying before they commit."

Ed Stansfield, property economist at Capital Economics, recently noted that prime commercial property - such as city centre office interior space across the UK - is witnessing continuing healthy demand.

He stated that investors are continuing to put their money into property that offers high yields.

Posted by Ian Johnson