Commercial property in demand in London

Banking and financial services groups could be set to drive up commercial property rents in London.

According to commercial estate agent Cushman & Wakefield, demand for office space in the City is beginning to outstrip the available level of supply.

Therefore, it believes the bottom of the market has been reached and that rental costs will soon go up.

Guy Taylor, an official at the firm, commented: "It's been a tenants' market for the last 12 months.

"Over the next few months, the imbalance is going to be addressed."

This, he said, means that vacancy levels and rent-free periods in London are likely to drop.

James Young, head of the company's City office, added that there has been a real "sea change" in sentiment in the market during the last three months.

This backs up recent observations from Knight Frank, which credited the banking and financial services industry with driving demand for commercial property in London.

Updated: 30 September 2009.
Categories: banking-and-financial-services, market-and-industry-news.