Prime City rents on the rise - commercial mortgages

30 October 2007

Rents for prime office space in London rose significantly in the first six months of the year, it has been revealed.

Research from Colliers has found that prime rents in the city rose by 12.5 per cent over that period, even though take-up of office space slowed sharply.

The study also added that rents have risen to record levels in the West End, where many locations now see lettings of over £100 per square foot as standard practice.

“Fears of an oversupply in 2008, when nearly 4.5m sq ft of space is due to complete, seem to be diminishing as demand for space remains high,” the report noted, according to the Financal Times.

“The market is overall in rude health despite the worries over the financial markets," added Colliers City office head Martin Wallace.

Firms with commercial mortgages saw office rents in central London rise at their fastest rate for seven years earlier this year, according to Knight Frank.