Space shortage will push rents in the City until at least 2013
THE UPWARD squeeze on City rents is set to continue until at least 2014, according to recent figures.
Office vacancy rates stood at 8.9 per cent in the three months to June, but demand should outstrip supply from 2011 and space will remain scarce until several skyscrapers are completed towards the end of 2013.
In addition, a wave of lease expirations between now and 2013 will push rents upwards and force firms to sign less favourable pre-let agreements to secure a space in the Square Mile, said research by property specialist King Sturge.
Companies like UBS, Bloomberg and RSA are looking to secure massive office spaces soon and landlords will watch the deals agreed closely. King Sturge predicted headline rents will peak at £67.50 per square foot.