Commercial rents in London’s square mile have ballooned to £65 per sq ft, higher even than those seen pre-financial crash back in Q3 2007, where rates reached £63.50 per sq ft.
During this time, property deals made by technology, media and creative firms have grown significantly, from around 14% to nearly 30% of those taking office space, with those like HP and Expedia setting up home in the City.
“Given this landlord-friendly scenario of diminishing supply and above average demand, we see rents rising further,” said Dan Gaunt, head of City office leasing at Knight Frank. “Prime rents could draw close to £70.00 per sq ft by year end, if the economy growth continues at its current pace.”
Labour’s shadow business minister Chuka Umunna spoke at the opening of a business accelerator in Croydon about the “atrocious” property situation in London, which sees some 78% of tech firms feeling the need to flee the cost of the Capital.