Consultancy provides office rent update - commercial mortgages

15 June 2009

It is probably not unrealistic to think that mid to late 2010 will be when office rents will stop falling in value, an expert has suggested.

According to Ed Stansfield, property economist at research consultancy Capital Economics, this will be the time at rents will at least "slow very substantially".

Office rents and the cost of commercial mortgages are considerations many businesses have to make and the financial expert suggested that a lot of the office market across Europe will not have been as exposed to the financial services sector by the as London has been.

Commenting on the market as a whole, rather than specific countries, Mr Stansfield explained: "We will be looking at a period in which rents might then be in the final leg of any downturn, or beginning to stabilise."

Earlier this month, holders of commercial mortgages are likely to have seen the Money into Property report by DTZ, which indicated that London was the world's only office market that offered so-called fair value.

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