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London Continues to Boom in Office Rents

20 February 2015 | Updated 01 January 1970
 

The latest survey from BNP Paribas Real Estate shows that central London is in great demand for companies wanting to have a presence in the capital.

An indication of how the rental dynamism continues is shown in BNP’s report for Q4 2014 where office space in the central London was the lowest on record at 5.1%.

The survey predicts that the shortages are likely to continue across the board in 2015 – currently figures stand at Midtown (4.8%), Southbank (3.6%) and West End (3.6%).

Other findings are:

  • 4.49m sq ft of take-up was recorded during Q4 2014, bringing the2014 annual total to 16.03m sq ft, the highest since 2000.
  • Technology, Media and Telecommunications (TMT) occupiers have dominated the market, accounting for 24% of total take-up for the year and 31% in the final quarter. Serviced office operators have also helped drive demand with the sector responsible for 1.2m sq ft, or 7%, of total office take-up for 2014.

BNP Paribas believes that demand should remain buoyant throughout the year ahead and with a limited supply pipeline, 2015 will witness increases in rental growth across most submarkets. ‘With fringe locations experiencing some of the best performance during 2014, we foresee strong growth in the traditional core City and West End markets during 2015’ the report states.

Picture: The boom continues – central London is in great demand for companies wanting to have a presence in the capital, resulting in scarcity. 

Article written by Robin Snow | Published 20 February 2015

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