London office space filling up fast - commercial mortgages

29 June 2007

Office space in London is now at a premium as investors with commercial mortgages reap the rewards of early moves into the market, it has been suggested.

The Evening Standard has reported that vacancy rates in the capital have fallen to their lowest levels for several years, with investors able to increase rents due to a lack of supply.

Moving forward, several new developments will help improve the situation, but the lucrative West End area will continue to enjoy premium prices and high returns, the newspaper suggests.

"London''s growing status as the world''s top financial centre is the key driver in the health of the capital''s office market and the apparent ability of occupiers to continue agreeing ever increasing rents," advised Anthony Duggan of Drivers Jonas, according to the Standard.

Commercial property investors are becoming more selective in their investment choices as they look to maximise returns, it has been advised this week.