Increasing West End office rents show market recovery
The office rental market in the West End has seen an increase in rent thanks to recession bounce-back
Rental prices for London office space in the West End are up for the first time in three years thanks to a recovering market. Research figures reported by Bloomberg Businessweek state that the cost of renting an office in the desirable West End area has increased by 13 percent over the second quarter of the year. Per square foot, office space is now at £85, although the figures predict that the price of desk space will increase to £87.50 per sq ft by the end of 2010.
The West End of London is a prime area for office relocations as it combines the best of the capital city, with amenities such as restaurants and transport connections just a stone’s throw away. Office prices plummeted across the country when the recession hit, causing landlords to drop their asking rents and introduce incentives such as rent free periods to encourage tenants to take up business space in the downturn.
The increase in rents is the first since 2007 when third quarter rents exceeded as much as £100 per square foot, with some even reaching £140 per square foot. It is encouraging for all concerned in the office property market to witness the recovering of rental prices, as it shows business is slowly gaining momentum once more. The increase in rents further indicates a renewed faith in commercial real estate which will hopefully generate new investment and development, allowing relocating companies to take their pick of offices.
Find a West End Commercial Property Agent to help you find the right office space to meet your office move budget.
