London office rents surge to 15-year high | 13 February 2015
It would appear it has never been a better time to rent out office space in London, what with the average rent per square metre rising 17pc from £560 (€757) to £655 (€886) throughout 2014. Availability is a big factor in the rise in rent, with vacant office space in the West End expected to fall to an all-time low of 3.5pc.
The figures from developers BNP Paribas Real Estate also show that office space in the City of London financial district will drop to its lowest amount since 2000. The 4.8pc in 2015 will push rent up by 16pc over the next 12 months, and an additional 12pc in 2016, independent.ie reports.
Steven Skinner, head of West End investment at BNP Paribas Real Estate, said: “The London office market continues to go from strength to strength. The combination of volatility in other asset classes and historically low yields in sovereign-bond markets should ensure that capital continues to flow into the London market.”
The total return for central London offices was almost a quarter (23.5 per cent) of initial investments. Amazon, Google, and Twitter are three of the major players expanding their London footprint, bloomberg.com notes.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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