City office rents left behind as West End soars
OFFICE rents in the West End have increased for the first time in three years, far outgunning steady rises in City charges, research out yesterday claimed.
West End rents rose 13 per cent to £85 per square foot in the last three months, in what property advisers Jones Lang LaSalle (JLL) described as a “real sea change”.
“It is a positive development for landlords and investors. Looking forward we expect modest growth over the remainder of the year,” said head of West End agency and development Jonathan Evans.
City office rents have continued to make a slow recovery, rising five per cent in the three months to July to an average of £50 per square foot.
However, a lack of new space under construction, down nine per cent in the quarter to 2.6m square feet, could soon force rents upwards.
“From 2011 until 2013 we are expecting double digit rental growth in the City, driven by supply shortages of prime stock,” said head of markets group Neil Prime.