London dominates office rents - commercial mortgages

30 May 2007

London continues to dominate the ranking of most expensive office rents in the world with the West End and City coming first and second place in the latest survey from CR Richard Ellis.

Office rents in the capital are not only the most expensive in the UK, but also the most expensive in the world, with West End rents significantly higher than those evidenced in third place Tokyo.

West End rents were recorded at $241.22 (£122) per square foot, followed by the City at $165.72 (£84) per square foot.

These figures show that London continues to be prime business location for international and domestic firms. However it could spell more expensive payments for firms with commercial mortgages seeking premises in London.

Overall, office rents in the West End were near double those paid in Moscow, Paris and Dublin, reports FinFacts.

Industry members have voiced concern over the future of the UK commercial property market, with some speculation that an ongoing sector boom could be coming to an end.