London offices have recently seen the largest ever rise in rental values as the property market finally starts to recover from the recession.
The office rental market was seriously affected by the recession because businesses became reluctant to spend money on renting new office space.
But now, after two and a half years of decline, there is finally a price increase in the rent of commercial properties.
Although this recent increase in rent does not represent a complete recovery, £69.50 per sq ft in 2007 compared to £47.50 per sq ft at present, some have suggested that this may indicate a recovery from the recession.
James Gillett, director of NB Real Estate, said: “This is a phenomenal recovery in rents in such a short space of time. It is not normal to see rents jump so dramatically but there has been little that has been normal about the commercial property market or the City of London over the last two years.”
It is believed that such a rise may be due to the lack of available office space within the capital. If so landlords could capitalise on the demand and as a result office rental prices may continue to rise.