PODCAST: All central London office markets are on track for a surge in rent prices as stock dwindles, CBRE forecast this morning.
The company said at its Growing London event at the May Fair Hotel, W1, that Mayfair rents can expect to hit £127.50 on average by 2018, from £109.50 in 2014.
During the same period, Midtown rents will climb 18.5% to £77 per sq ft, South Bank rents by 21.8% to £67 per sq ft, and in the City rents will increase to £72.50.
Speaking to Estates Gazette after the event, CBRE’s head of central London research, Kevin McCauley, said: “With supply tightening there will be more rental growth, and in that we will expect to see a stronger development response coming through, but given where we are in the cycle that will not be until 2017-2018.”
Over the past two years, just 7m sq ft of projects were started on site in central London, compared with 12m sq ft between 2007 and 2008.
