BNP Paribas Actual Property has predicted that tremendous prime workplace rents in London’s West Finish might hit £300 per sq ft by December 2024, because it says demand continues to outstrip the constrained provide of house. The prediction has been made on the premise of proof shared by an knowledgeable on the agency. BNP Paribas Actual Property West Finish workplace agent Simon Knights claims that lettings might see rents for tremendous prime workplace inventory attain highs of “as much as £300 per sq. foot by December 2024” as demand continues to outstrip constrained provide.
He commented: “You don’t want a crystal ball to see the place the tremendous prime West Finish workplace market is headed. We predicted final yr that leasing occasions, enterprise development plans, and the significance of using expertise would drive the market and all of the cynics accused us of being terrifyingly optimistic, and look, we’ve seen rents of over £200 per sq. foot repeatedly mentioned on prime buildings.
“Banking and finance occupiers particularly proceed to steer the course of the market. This exercise has seen footprints rocketing in dimension and discussions round tremendous prime rents transfer to new heights because the grapple for house turns into more and more extra heated and aggressive. My prediction, based mostly upon this exercise, is that we might see rents attain highs of as much as £300 per sq. foot by December 2024 as this demand continues to show the naysayers improper that believed the tip is nigh for the workplace sector. These occupiers looking for out these new premises are much less involved by bodily occupancy and are extra a lot enlivened by location, expertise, standing and development.”
The agency says that the assertion is evidenced by the newest Q3 2023 information:
- West Finish take-up climbed from 520,000 sq ft in Q2 2023 to 746,000 sq ft, while the emptiness fee stood at slightly below 6.0 %.
- In Mayfair and St James’s, the Grade A emptiness fee stands at round 3.0 %
- Banking & Finance remained probably the most lively workplace sector, accounting for a 32.6 % share of take-up throughout 20 offers equating to over 243,000 sq ft, representing a quarter-on-quarter improve of just about two-thirds (66.5 %) within the West Finish
- Prime West Finish rents stand at £150 per sq. foot (up 7.1 % year-on-year)
Rents have been achieved in extra of £150 per sq. foot on the tremendous prime finish of the market throughout buildings like 65 Davies Road, W1 (£185psf); 38 Berkeley Sq., W1J (£180psf); Berkeley Sq.’s Landsdowne Home, W1J (£175psf); and 75 Grosvenor Road, W1K (£170psf).
