A lack of office space in South East London has sent rental rates soaring, according to Estate Agent Knight Frank. There has been a drop in vacancy rates, from 5.9% to 4.2%, coupled with a 13% decrease in the availability of suitable offices, which has led to the increase in rents.
The figures, which are good news for landlords holding property in this area, were revealed at Knight Frank’s M25 breakfast presentation. With the Tories winning the general election this month, demand in the office market is likely to strengthen even further and the upward trend in rents should continue.
Emma Goodford, the Head of Knight Frank’s National Offices Leasing Team, explained:
“2015 has started positively supporting our view that take up in the M25 will be almost 30% ahead of 2014, and above the 10 year average. Vacancy levels are heading towards crunch point in combination the market seeing rental growth across a growing number of key centres. In some cases rents are now at an all-time high – motivation for occupiers to identify and secure the best space now. The election has removed uncertainty and will drive demand.”
Knight Frank is a leading independent, global real estate consultancy that offers both residential and commercial property. With its HQ in London, it has 370 offices in 55 countries across the globe and employs more than 12,000 staff.