West End office space most expensive in the world.
Offices in the West End top most expensive poll.
Offices within London’s West End have been ranked as the most expensive in the world. The increase in office rental costs is being accounted to the recent rise in demand for quality space within the new media and financial sectors.
The West End has taken over Tokyo to become the most expensive area in the world to rent office space in. The statistics were put together during Knight Frank’s annual review of global markets.
West End office space rents had risen 31 per cent to £85 per square foot by the end of 2010. The City of London also made it into the top ten locations coming in at number 7. It is expected that leasing prices in the West End will continue to rise across this year with the average rent currently standing at £90 per square foot.
Additional interest and demand from media companies such as Apple and Google will also help to ensure that office prices in the West End continue to rise. The report from Knight Frank stated “The central London office market has led the recovery in demand and rental values. Take-up improved strongly in 2010, largely as a result of increased demand from the financial sector. London saw the most dramatic rise in prime rents in Europe.”
The report shows a continued stabilisation and recovery in the office space industry all over the world. “Globally, commercial property markets are in the midst of a multi-speed recovery, which has been led by major financial centres such as London, Hong Kong, Singapore and New York,” commented Matthew Colbourne, a senior international research analyst.