London’s West End to be Europe’s fastest growing commercial property market in next five years
Published on
2010-12-07T00:00:00
Office space to let in London's West End is predicted to be the
fastest growing market across the continent over the next five
years. This has been attributed to the reduced amount of
development activity in the area that will continue to force
businesses to rent commercial office space.
The average cost of office space in Europe is set to increase
two per cent year-on-year for the next four years according to the
fourteenth edition of DTZ's annual 'Global Occupancy Costs:
Offices' survey published last week.
Following an assessment of office space costs in 121 business
districts across 47 different countries DTZ ranked the locations
based on annual costs per workstation in US Dollars, including
rent, outgoings and necessary maintenance costs.
Occupancy costs are expected to reach £15,854 per workstation in
London's West End by 2015, retaining its position as the world's
second most expensive commercial office location behind Hong
Kong.
Office space in Greater London is also ranked as the eighth most
expensive place to rent in the world, with the current cost of a
City workstation averaging £9,410 a year.
Certainly there is increasing optimism about the City's
commercial property market, with an 18 per cent increase in new
sales and lettings in Q4 2010. This is due to the growing number of
businesses planning to expand with the Government's upcoming Budget
set to aid the growth of small and medium-sized enterprises.
At Pall Mall we have a wide range of commercial
properties to let to serve industrial, retail and office
opportunities across the City. There is much to be excited about in
London as it prepares to host the 2012 Olympic Games next
summer.