Document variety of London workplaces rented for £100 per sq ft
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document variety of London workplaces are being rented out at greater than £100 per sq ft, because the “super prime” sector turns into an ever-increasing a part of London’s industrial property market.
According to actual property advisor CBRE, 37 properties have been rented out at £100 or extra per sq ft through the first quarter of 2023: the very best whole on document. Those offers make up 14% of whole workplace leases through the quarter.
“What is clear is that Q1 2023 was not an outlier,” says Simon Brown, senior director and head of workplace analysis at CBRE. “The trend towards high rent deals has been evident since the end of lockdown and for the first time, £100+ per sq ft rents are becoming more common place outside of the West End.
“Whilst leasing activity in general has slowed since the pandemic, we have seen an uptick in activity for the very best quality space.”
Adam Cosgrove, head of West End leasing at CBRE, added that these offers have normally been pushed by tenants searching for extra sustainable workplaces in central London areas.
“We have seen super-prime transactions across all West End submarkets, but it has been particularly pronounced within Mayfair & St James’s where rents have been secured significantly ahead of the prevailing ‘headline prime rent’,” he mentioned. “The super-prime transactions have been driven by demand from occupiers looking to secure the very best space with strong sustainability credentials.
“We are also seeing a far greater spread of rents being secured within buildings with the highest rents being achieved on the stand-out floors, often benefitting from access to private terraces and high-quality amenity space.”