24 Sep

Improved office rents due to "lack of new completions"

Improved office rents due to "lack of new completions"

Team Association customers might be interested to learn that the predicted improvement in the performance of prime office rents will be down to the "unprecedented" lack of new office completions due in 2011 and 2012, according to one property expert.

Mat Oakley, director of research at global real estate service provider Savills, said that the "potentially huge" impact of this will see a "very fast" reduction in vacancy rates and a sharp rise in rental growth.

His comments follow the forecasts of Knight Frank, which claims that office rents in the City of London and in the West End will return to growth in 2010.

The company believes that they will rise by four per cent in 2010 and by 37 per cent within the next four years.

"If you think rents are going to start to rise, then clearly the window of opportunity to do great deals is probably in the next nine to 12 months," stated Mr Oakley.


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