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Which areas were the star performers in London’s solid first quarter office leasing market?
Non-traditional areas outperformed core areas like the West End, City and Midtown when it came to rising rents, according to research from occupier specialist DeVono Cresa.
Camden saw the biggest jump, with prime rents rising a whopping 14% to £62.50/SF. The Southbank and City Fringe North increased 5%, to £72.50/SF and £72/SF, respectively. Availability is particularly tight on the Southbank, at just 5%.
The City Fringe West district rounded up the areas which saw uplifts, with prime rents rising 2.5% to £71/SF.
DeVono said conditions are more favourable for occupiers looking for smaller, Grade B spaces than large prime spaces, although London still remains a tenant’s market.
“The minimal movement of Grade B rents over the quarter, coupled with some generous rent-free periods, and the fact that the availability level of this type of space is high, plays into the hands of a negotiating tenant,” DeVono Head of Insight Shaun Dawson said.
“Add into the mix the competition from the surging provision of serviced office/co-working space, and landlords are recognising that flexibility in both approach and terms will be key to securing a tenant.”
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