Landlords prosper in London - commercial mortgages

16 October 2007

Landlords with commercial mortgages saw over three million square feet of office space let in the third quarter of the year in spite of the problems caused by the credit crunch, new research has revealed.

A study from Jones Lang LaSalle and Cushman & Wakefield showed that leasing activity rose by 15 per cent year on year over the past three months, with pre-lets on the rise due to increased demand and lower supply.

Last month a deal to let 12 St James''s Square was cited by analysts as evidence of the market''s continued buoyancy.

"It is testimony to the fact that the West End is hugely undersupplied with quality stock and financial organisations are definitely alive and kicking," DTZ director Paul Smith told the Financial Times.

Earlier this month, meanwhile, it was suggested that a lower rate of construction in the capital would help ensure returns remained healthy due to restricted supply.