If you want to know where to secure the top office rents, look no further than the Tube map. Alex Peace maps out the fastest-growing hotspots
When it comes to London offices, it is not just about where you can get the best rents. It is about identifying the growth areas and getting in ahead of the pack. And you could do a lot worse than use the rental performances along London’s train and Tube lines for guidance.
Top of the list is Docklands Light Railway, which has seen the fastest-growing rents on the London rail network over the past 12 months. Since last summer, rents along the route have risen by 14.3%, hitting a peak as it passes through the City, according to research from niche agency TSP. The Central line came a close second at 13.8%, driven by rents rising by £15 per sq ft in Soho.
But sky-high rents in the core London office markets are pushing occupiers to look at fringe areas.
Zac Goodman, chief executive at agents TSP, says: “Rents across London’s core office districts are generally moving upwards by roughly £5 to £10 per sq ft. Our advice is to look at the wider Tube network.”
For example, with prime rents only £30-£35 per sq ft for quality space, Vauxhall is still only 14 minutes from Holborn on the Underground – the same distance as Paddington, which commands rents of £50-£60 per sq ft.
Goodman expects City fringe areas that are rich in unmodernised office stock to do well in the coming years, but also believes areas such as Kentish Town and Tufnell Park will thrive.
