The West End, which suffered the sharpest decline in rental last year, ranks top in the Consultancy group’s list of prime office space location. Rents in the area are predicted to rise to £70 per sq ft over the year compared to £47.50 at current levels.
During the financial crisis, office rents fell by over 40 per cent. But financial tenants are now more confident and want to trade up their office space. Experts say this is squeezing already limited supply and pushing prices up.
“Occupiers now have greater visibility and confidence about their sector and their markets; and they are looking to stabilise or expand their businesses. This is after almost twelve months of inactivity”, said Mark Bourne, head of London markets at King Sturge.