Office rents will start to rise

Rent for premium offices in the City and the West End will start to rise in 2010, following the correction seen in 2008 and much of 2009, according to Knight Frank. This reflects less than expected distress in the market in 2009, a significant recovery in demand recorded in the summer, the recent rally seen in global equities, and the drop off in speculative development completions expected between 2010 and 2012. Knight Frank forecasts that average prime rents will rise by four per cent in 2010 to £44 per sq ft having fallen 21 per cent in 2009 to £42.50 per sq ft.