Insurance News Archive

West End hailed for commercial property rents

Growth in rental income from commercial property in London's West End is continuing apace and has attracted praise in a new report.

High demand for office space is forcing rental prices ever-upwards in the centre of the capital, according to the Knight Frank European Investment Report.

But this is being supported by strong growth in the wider London economy, backed by good performance from Europe as a whole.

Commercial landlords may have been hit with lower overall yields, however, due to record levels of investment in the sector, the report suggests - although it notes that "nonetheless, the volume of capital being invested [in the UK and Ireland] is set to remain high".

London has soaked up the rapid growth of financial groups, which have swarmed the city in a flurry of mergers and acquisitions against a backdrop of strong stock market performance.

However, this had added competition for landlords looking to add to their commercial property portfolio in London who may find they have to pay high prices to purchase newly-developed property.

27 Jul 2007