Shortage Of Office Space 'Will Drive Rents Up'

Despite new developments to bring more office space to the London market, there will continue to be a shortage of suitable properties...

Despite new developments to bring more office space to the London market, there will continue to be a shortage of suitable properties, which will result in rents remaining high for the foreseeable future. So claims Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors.

He states that although the latest office buildings are welcome in the sector, "the likelihood is that it is going to be insufficient in terms of new, top-quality, commercial office space coming on to the market to reflect the continual desire of occupiers". Mr Rubinsohn's comments may encourage investors to look into this asset class as a potentially lucrative option among global real estate opportunities.

Earlier this month, Henderson Property explained that investment in commercial developments in central London is likely to remain popular because the city's "global exposure" offers investors the chance to diversify their portfolios. Meanwhile, the firm also predicted that an "enhanced performance" can be expected in the sector over the coming years.
 

- Tuesday 26 July 2011

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