Paddington has seen the highest increase in office occupancy costs in London over the past year as Crossrail nears completion, according to Carter Jonas’s Q2 London Office Market Overview.
Total costs in the area – including rent, business rates and service charge – rose 8.2% in the past 12 months from £100.25 to £108.50 per sq ft.
Meanwhile, the sharpest fall was in Mayfair, the most expensive part of London, where total occupancy costs were down 5.6% from £177 to £167 per sq ft.
Michael Pain, head of the tenant representation team at Carter Jonas, said the fluctuation was a reflection of tenants continuing to look for better value in sub-markets outside of Mayfair, while landlords near future Crossrail stations were benefitting from greater connectivity.
Rents are expected to continue to fall or stagnate in each of the sub-markets analysed over the coming year, due to the uncertainty caused by Brexit.
