Rents in the City are due to jump 10.5% this year according to commercial property experts King Sturge. The group say City rents could hit up to £47.50 psf by the end of the year, due to weakened supply and a more buoyant occupational market. Landlords will be thankful for the increase projection, as rents have fallen by as much as 40% in some areas, mianly the West End. There is also very little building work planned for the next 2 – 5 years.
Angus McIntosh from King Sturge sounded very optimistic about the coming year starting that“2010 will be a boom year for commercial property investment.” However the danger of a double dip recession is still looming with the possbility that rents could fall again in 2011 or 2012. Canary Wharf is said to be the most healthy major office market in London with vacancy rates predicted to fall below 10% this year.