Central London office market continues to growNovember 12th, 2012 Category: Building Management
The central London office market is still doing relatively well, new figures have revealed.
According to CB Richard Ellis (CBRE), capital values went up by 0.9 per cent in October 2012, while total returns surged by 1.3 per cent.
This meant the capital continued to outperform other parts of the country last month, as it has done throughout the entire economic crisis.
As a result, demand for contract cleaners looks set to remain strong in the region in the near future, as businesses look to keep their premises in top condition.
Leslie Schroeder, a senior analyst at CBRE, commented: "The disparity between performance in the central London offices sub-market and the rest of UK offices sub-markets is once again prevalent."
"As central London continues to witness modest growth in values and positive returns each month the opposite is true for the rest of the UK."
Mr Schroeder noted that investors are currently taking a highly cautious approach at the moment and are therefore tying up their money in only the very best buildings.
Across the country as a whole, total returns on commercial property went up by 0.4 per cent, a figure CBRE described as modest. Meanwhile, capital values in the UK commercial property market slumped by 0.1 per cent.
This is a clear demonstration of how London is bucking the national trend, as it is performing well above average.
Indeed, the capital is to a large extent supporting the UK-wide figures and looks set to continue doing so for some time to come.
With official statistics confirming the British economy has emerged from its double-dip recession, it remains to be seen whether conditions will pick up outside the capital.
However, a recent report from Knight Frank did suggest the commercial property market is picking up in some market towns and cities across the UK.
This is being driven partly by an upturn in development activity in the leisure property sector, as well as the retail and food store market. Knight Frank acknowledged this only represents a slight improvement in the last few months, but nevertheless this might still be considered progress amid the tough economic climate.