These Areas Will See The Biggest Rent Hikes In The Next Few Years
A new report from Carter Jonas outlines the Central London districts likely to see the biggest increase in office rents over the next two years — as long as the UK doesn’t leave the European Union without a deal.
The agency outlined Southwark, Paddington, Victoria, Fitzrovia, King’s Cross, Bloomsbury, Soho, Marylebone and Mayfair/St James’s as the areas that will see the biggest increase between now and the middle of 2021. All of those areas will see average increases of £5/SF. Current levels for those districts range from £67.50/SF in Southwark to £110/SF in Mayfair/St James’s.
Carter Jonas said prime City rents will be flat until 2021, then tick up to £65/SF from the current level of £62.50. Secondary city rents should stay flat at £60/SF. White City and Hammersmith in West London will also see rents stay flat.
The company said one district would see rents fall: Canary Wharf, where it said it expected average rents to fall from £52.50/SF to £51.50/SF.
All this is predicated on the idea that there is no hard Brexit. If there is, kiss any idea of rents rising goodbye, Carter Jonas said.
“Occupiers that are considering a relocation to new or refitted office space should be aware that the window of opportunity to secure competitive lease terms is narrowing — given the likelihood that landlords will begin pushing up advertised rents in many parts of London next year as vacancy, and choice, declines,” said Michael Pain, Carter Jonas' head of tenant representation.