West End rents ride high - commercial mortgages

06 June 2007

Office rents in the West End continue to show signs of strength, indicative of an ongoing boom in the capital''s commercial property market.

Many investors and businesses remain focussed on London for prime investment opportunities, while the commercial rental market also continues to attract tenants. This includes those who might otherwise take out commercial mortgages.

Recent examples include the €100 million (£70 million) of a property on Victoria Street in London, bought by Irish property investor syndicate Oregan Financial. The West End property, which has recently been refurbished, is fully let to the UK Department of Trade and Industry.

Andrew Gunne of CB Richard Ellis states that the central London commercial property market is one of the most landlord-friendly in Europe, according to the Irish Independent.

"The low level of availability, together with a relatively small development pipeline coming through in the short-term, means rents are being driven significantly higher," he said.

West End office rents are the most expensive in the world according to the latest survey from CB Richard Ellis.