Demand drives prices of London’s West End office space up by 15 per cent | 18 December 2013
A new study has found that the cost of high end office space in London’s West End has risen by 15 per cent over the past year.
According to ft.com, the main reason behind the rise is the recovering economy in the UK. This in turn has pushed demand up, mostly from resurgent financial services companies.
The research, which was conducted by CBRE, also shows that London’s West End is home to the most expensive office space in the world, with Central District in Hong Kong behind in second and Finance Street in Beijing in third, reports standard.co.uk.
Emma Crawford, CBRE’s head of West End and Midtown leasing, said next year looks set to be good for the industry.
“Sentiment has significantly improved over the past 12 months and the market looks much stronger,” she commented. “Next year is a really exciting time. We have gone through a difficult period and I think we are on the cusp of real change. I would expect London to still be on top next year.”
Since the financial crisis, Hong Kong has always held the title for most expensive office space in the world, so the sudden shift shows just how much London’s economy has recovered over the past year.
The West End has proven particularly popular as there is a shortage of quality office spaces in good areas. Strict planning rules in the West End have kept the number of new offices down and attractive period buildings have helped push rents up.
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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