Rents in the City of London are seeing an unprecedented rise thanks to demand for dwindling grade A office space, it has been claimed.
Demand for prime property is driving up rents in the City of London, according to the latest data.
Agency NB Real Estate has revealed that office rents in the area have risen by 12 per cent for the second consecutive quarter - following two and a half years of falls across the rental market.
This equates to a year-to-date rental increase of almost a quarter - the highest recorded rate since records began back in 1988.
The firm's director of City offices James Gillett said that the figures underline the fact that the
property investment market had been on a rollercoaster ride for the last few years.
He explained: "The recession saw a collapse in new construction starts in the City.
"Tenants are now locked in bidding wars over the dwindling supply of grade A space, which is driving up rents."
Rival agent CB Richard Ellis recently noted that growth in the value of
commercial development assets is slowing down, following a rise of just 0.6 per cent in commercial asset values during June.
Posted by Lisa Fear.
Latest News 
