24
Sep
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.
