Rental value growth in Midtown outperformed the rest of central London in the first half of 2014, with office rents rising by 5.9%.
This compares with 5.9% in the West End and 4.7% in the City, according to new data from IPD and Farebrother.
Prime Midtown rents crossed the £70 per sq ft mark during the period and now exceed pre-2008 levels by 1.3%.
Capital values for offices in the area grew by 9% during the first half of the year, ahead of the 8% central London average, but slightly behind the West End’s 9.5%.
The total return for Midtown offices during H1 was 11.1%, almost double the return for the same period last year.
Alastair Hilton, head of investment, Farebrother, said: “Midtown is central London’s most oversubscribed office market. The demand-supply imbalance means that availability is likely to drop below 4% at some point.
“The strength of the occupational market is driving rental growth, and we are seeing leasing deals being done at unprecedented levels on prime assets.”
sophia.furber@estatesgazette.com
