Central London rents to drop 20 percent
July 31st, 2008 | by Adam LuckingA recent report by the British Council of Offices (BCO) has said it expects Central London rents to fall by 20% over the next two years. The report which is written around office demand says that London rents were extremely inflated and would suffer a 20% correction up to 2010.
The highest rents in Central London are actually 70% higher than Mumbai, Moscow and even Tokyo and these are the next expensive cities in the world.
London will be the worst affected region due to the increase in rent it has seen over the years and the strength of its finance sector means it is more vulnerable to the effects of the credit crunch.
Additionally, office construction has increased as a direct response to the rental growth which actually means that a lot of new offices will be ready to use during a drop in the market.
This means that office rents in Central London will fall by 20% over the next two years due to the weak demand and increased supply.
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One Response to “Central London rents to drop 20 percent”
By Paul Martin on Aug 12, 2008 | Reply
My company used one of the Targetspaced serviced offices at St Mary Axe to give off the right impression to a client and can honestly highly recommend them - very professional and did the job for me as we sealed the contract at the meeting!
We are a SME and the cost of an office in London is out of the question so a serviced or virtual office is the ideal solution for us.