Prime office rents across all Central London markets have risen over the last year, according to BNP Paribas Real Estate. In the City prime rents rose to £54.50 per sq ft in the first quarter of 2011 which represents a 17.5% increase from Q1 2010 whilst in the West End top rents have reached £92.50 per sq ft, an increase of 19% from the same period last year.
Prime office rents across all Central London markets have risen over the last year, according to BNP Paribas Real Estate. In the City prime rents rose to £54.50 per sq ft in the first quarter of 2011 which represents a 17.5% increase from Q1 2010 whilst in the West End top rents have reached £92.50 per sq ft, an increase of 19% from the same period last year.
Prime rents in Midtown have remained stable at £50 per sq ft for the last two quarters and are up 14% from Q1 2010; whilst the Docklands has seen a more modest increase of 4% over the last year with headline rents now at £36.50 per sq ft.
Take-up for Central London offices in quarter one reached 2.39m sq ft, according to BNP Paribas Real Estate. The West End saw take-up total 810,000 sq ft which surpassed take-up levels for the previous quarter, the same quarter last year and the five year average.
Keith Harris, senior director of West End office agency at BNP Paribas Real Estate said: 'We have seen activity begin to increase steadily in the West End market with a number of niche financial occupiers taking new space and paying premium rents for it due to the lack of good quality stock. Media operators and new technology companies are also active in the market and due to the very limited supply pipeline, demand, and in turn rents are increasing.'
