The price of renting office space in London is climbing - and only set to go even higher as with development and supply at a twenty year low.
Despite two new buildings set to open for next year, Hines' Cannon Place, which will contain three hundred and eighty nine thousand square feet of potential executive office space (with eight floors of fifty thousand square feet each), and Heron International's Heron Tower, which will contain four hundred and sixty thousand (with thirty two floors of twelve thousand square feet each), it is still not expected to be enough to cope with demand - and the end result, of course, is higher prices.
Three years ago rents for London office space were about sixty five pounds per square foot. That fell to forty nine pounds fifty by earlier this year, but those rates are now increasing again to an average of fifty three pounds fifty - and are only expected to continue to rise as the level demand continues to outweigh the level of available office space on supply.
Although there are other developments being considered, most notably the "Cheesegrater" and "Walkie Talkie Tower" schemes, many of them are at least four years away. Only two new buildings will open in 2011, none in 2012 and just one for 2013, meaning it will be at least four years before major avenues of new office space become widely available. In the meantime, renters of office space can expect to see those rents continue to rise and rise.
