City of London office rents 'up 25 per cent'

The value of office space in the City of London rose by a quarter last year, new figures have shown.

Article posted: 10 Jan 2011

Firms looking to rent offices in the City of London are facing greater expense after new figures showed rents in the district rose by 25 per cent last year.

According to data published by consultancy Drivers Jonas Deloitte, 2010 saw the biggest annual increase in the cost of office space in the City of London for some 22 years.

By the end of last year, rents in the area had risen to £55 per square foot of space, the Financial Times reports.

Head of research at Drivers Jonas Deloitte Anthony Duggan said the figures showed the market in the capital's financial district had "bounced back".

"Although we are not expecting rents to continue at the pace seen in 2010, we do expect double-digit rental growth again in the City," he told the Financial Times.

Property agent DTZ recently warned that there could be a shortage of new and refurbished office space in the City of London this year, with just 1.3 million sq ft completed.

Posted by Aree J Rand