by Rebecca Walker — January 14, 2011—According to research from Capita Symonds, rental values in London rocketed in 2010 and demand for grade A space far outstripped supply despite a gloomy fourth quarter which ended with a sharp fall in take-up of offices across central London markets and little movement in rents.
According to the report, there was a 14 percent rise in rental values across London in 2010. Although the take up of offices across central London fell sharply in the last quarter of 2010, with rents also stagnating, prime rents are stable or rising in all sub-markets. Meanwhile vacancy rates have fallen, with an overall drop across the capital to 8.0 percent, from 9.1 percent in 2009. In particular, inner London office availability decreased by 12.5 percent in 2010, with the largest percentage decreases being seen in midtown (26 percent) and the south bank (17 percent).
Looking forward to the whole of 2011, the research predicted that the marked disparity between high demand for grade A space and inertia in the rest of the market, which was such a feature in 2010, is set to continue into 2011 and beyond.
The buoyancy of the central London office sector also contrasts starkly with the picture elsewhere in England, particularly the north, where little new development is evident and rents generally remain stagnant.
Capita Symonds is one of the U.K.’s largest, multifaceted consultancies, delivering property and infrastructure projects on a local, national and international scale. For more information, see the Web site.
