Office space rental values in the City of London have surged in the last nine months, new figures reveal.
According to figures from NB Real Estate, average rents for A-grade office space in London’s financial district now stand at £53 per square foot.
This represents a rise of 25 per cent from the start of the year, when the average was £43.50 per square foot.
The sea change in conditions has seen the revival of a spate of building projects that had been postponed, as developers look to capitalise on renewed demand, NB Real Estate claims.
These include the so-called ‘Cheese grater Tower’ in Leadenhall and the equally colourfully named ‘Walkie Talkie’ development at Fenchurch Street.
James Gilet of NB Real Estate told the Guardian that the trend was a direct result of a shortage of supply of high quality space.
He added: “Demand for new space has recovered sharply, but this is in stark contrast to demand for second-hand space which is still very subdued.
“Prospective tenants are increasingly locked in bidding wars for Grade A space, which should continue to push rents north for the foreseeable future.”