South Wales office rents approaching record highs - commercial mortgages

03 April 2007

Office rents in South Wales are on track to reach record levels this year, according to new estimates.

It is thought that rents could reach £20 per square metre by the end of 2007, indicative of rising demand for office space in the region. The uptake of commercial mortgages in South Wales may also increase in line with demand, as commercial property investment becomes more profitable in the area.

Huw Thomas of King Sturge argues that business tenants will continue to be attracted to the South Wales despite rising rents as a result of strong demand.

A new report from King Sturge states that demand for UK office space remains high in the face of the proliferation of overseas call centres, due to shifting trends towards UK-based centres.

"Increasing resistance from consumers to overseas call centres is manifesting itself in new demand in the UK for economic contact centres," stated the report.

Elsewhere in the UK office rents in Glasgow have shown an increase of 19.5 per cent diring the past year, according to research from GVA Grimley.