Rents for London office space are set to skyrocket in the next two years, a study suggests, amid severe supply shortages.
According to Capita Symmonds, the shortfall in available office space will be the most marked since 1980. This could send the price of office space in the West End to £100 per square foot by 2013 – up from the current average rate of around £70.
The City will see a less pronounced rise. However, office space rents could still increase from today’s going rate of £55 per square foot to £65 per square foot.
James Gillet, Director at Capital Symonds, attributed the trend to a glut of scrapped developments prompted by the climate of economic uncertainty since late 2007.
Gillet said: “Two years ago, this situation would have been unthinkable.
“Those who took the plunge and invested in the central London office market over the last 18 months have good cause to celebrate.”