Rental growth in Shoreditch will outstrip London’s core West End this year.
Research from Knight Frank reveals that rents in the northern city fringe, including Shoreditch and Farringdon, will climb by 8.6% to £57 per sq ft by the end of the year.
Core West End rents will rise by about 7% from £107.50 per sq ft to £115 per sq ft during the same period.
The prediction came as dwindling supply continues to push up rents. Vacancy rates in the two submarkets stood at 4.8% and 5.8% respectively at the year end.
Total available London stock fell by 20% last year to 12.9m sq ft.
At its central London breakfast this week, Knight Frank said the London office market had produced its best performance since 2000 in 2014, as take-up rose by 16% to 15.9m sq ft – well above the 13m sq ft 10-year average.
Leasing partner Dan Gaunt said: “The office market has moved in favour of the landlord, thanks to a large fall in supply.”
He added: “Demand levels remain strong going into 2015, particularly from the up-and-coming digital and creative industries.”
