Commercial property demand has risenApril 16th, 2015 Category: Commercial
There has been an increase in demand for commercial property, according to new findings.
Research published by commercial estate agent Cushman & Wakefield revealed that the heightened demand for businesses premises has resulted in an increase in rental prices, particularly in cities such as London.
Its figures showed that firms took up 2.4 million square feet in office space during the first three months of this year.
Demand was strongest in the city, with corporations such as Deloitte forging major deals in the City.
In fact, Deloitte struck one of the biggest deals, and secured 270,000 square feet, pre-let at number one New Street Square.
Speaking about the findings, Andy Tyler, head of West End office agency, at Cushman and Wakefield, said: “It is clear that rising rents and scarcity of product are leading to a redistribution of occupiers across Central London, particularly West End occupiers. There were 31 relocations over 10,000 sq ft from the West End in 2014 and we expect the number to increase during 2015.”
Research from the company revealed that prime rents across Central London have increased by 7.4 per cent in the year to March.
This has led to the City of London recording growth of over nine per cent to £63.50 per sq ft.
Furthermore, the findings showed that the momentum in the City of London office market continued in the first quarter of 2015, with a total of 1.8 million sq. ft let.
This represents a 34 per cent rise on the first quarter of last year. Grade A office space was particularly in high demand, with the research showing that the volume of completed Grade A space leased in the first quarter of this year is almost double that recorded in the first quarter of last year.