As I  predicted in January, Central London office rent has continued to rise during the first quarter of 2014 and there are increased supply shortages throughout the Greater West End. In Q1 2014, we have noted an on average 2.5% rental increase throughout the 18 central London sub markets covered in our rental guide.

And tenant incentives such as rent free periods are dropping like a stone.

The movers and the shakers

Around 3 million ft2 of office space went under offer in Q1, almost double the average over the last 5 years. Big name tenants on the move include Transport for London, looking at space in Upper Bank St and Google, who are poised to take over 160k sq ft in 6 Pancras Square, close to Kings Cross. Other major movers include the advertising giant Havas and Estee Lauder.

KPMG are looking to complete the consolidation of their 6700 staff into a single location in Canary Wharf within a year. But bowing to the importance of West End based decision makers unwilling to travel east to see their bean counters, they are also reportedly in talks to take 40,000 ft2 in Mayfair from the Grosvenor Estate.

And for the rest of the year?

We predict further rent rises throughout the rest of 2014. And areas where we expect disproportionate future rental increases include Covent Garden, Midtown, Clerkenwell & Silicon Roundabout.

Please take a look at our recently updated London office rental guide for a comprehensive breakdown.

About Ian Kitchener

Ian Kitchener

Ian has advised Central London office occupiers for over 20 years. He loves fighting their corner and making sure they get what they need - a great office on the best commercial terms available.

New Deals!

20 workstations acquired in St James’s for Technology Company

2790ft2 office space for management consultancy in Euston Rd, NW1