The meteoric rise in London office rents is unlikely to slow down for at least another year, the chief executive of property developer Helical Bar said yesterday, as companies compete for limited office space.
Mike Slade predicts that rents in the City will rise to a record £100 per square foot by 2017 and £75 per sq ft in Shoreditch, by which time he believes the market will“level off” as more space becomes available.
“That will end in two years time and to have most of your assets being built in the City, the West End and in Shoreditch is the clever place to be,” Slade said.
The company, which is behind a number of City schemes including The Bower in Old Street, saw its net rental income jump by 30 per cent to £38.6m in the year to 31 March.
Net asset value rose by 23 per cent to 385p a share in the year , with the value of the developer’s portfolio rising to a record £1bn.