London Faces Biggest Office Shortage Since 1980, Capita Says
April 01, 2011, 3:43 AM EDTBy Tim Barwell
April 1 (Bloomberg) -- The biggest shortage of prime office space in central London since at least 1980 will cause rents to jump in the next two years, Capita Symonds Ltd. said.
Rents in the West End may rise to 100 pounds ($161) a square foot from 70 pounds by 2013, the London-based property broker said in a statement today. In the City of London financial district, rents may increase to 65 pounds a square foot from 55 pounds.
“Two years ago, this situation would have been unthinkable,” James Gillett, a director of Capita Symonds, said in the statement. “Those who took the plunge and invested in the central London office market over the last 18 months have good cause to celebrate.”
Available office space has declined in nearly every part of central London in the last year because of a dearth of new developments, Capita Symonds said. Only 12 deals in excess of 20,000 square feet (1,900 square meters) took place there in the first three months of the year, down from 39 a year earlier, according to the statement.
--Editors: Andrew Blackman, Ross Larsen.
To contact the reporter on this story: Tim Barwell in London on tbarwell@bloomberg.net.
To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.
