Office rents in London moved further ahead of other UK cities in 2010, it has been revealed.
According to a study conducted by Drivers Jonas Deloitte, rental growth for office space in the capital was driven by a supply shortfall, as demand surged by 25 per cent across the capital.
Rents in UK cities were for the most part down for the year, with decreases noted in Glasgow, Edinburgh, Leeds and Birmingham.
Manchester office rental values stayed stable at £28.50 per square foot, DJD’s UK Key Cities report revealed.
Anthony Duggan, Head of Research at the company, told Property Week: “2010 saw a strong year of growth for central London offices but there were some further falls in rents in the regions during the first half of the year.”
“We are expecting an improving outlook across the UK during 2011, with rental growth in London set to continue and the stabilisation witnessed in the regions during the second half of the year showing further improvement as the lack of new development allows supply to fall.”
He added: “Prime commercial property in London will continue to attract investors, and as the regional cities maintain their recovery investors will be increasingly looking beyond the capital.”
Supply in London has been constrained by principally by developers scrapping projects at the height of the credit crunch.