London office vacancies down and investment up, say NB Real Estate
Vacant office space in the City of London is beginning to subside, according to new research by property experts NB Real Estate. The London property investment market is also said to be up.
At the conclusion of 2009 Q3, the City has seen vacancy rates fall to 10.1%, down from 11.9% in the first quarter.
Office deals in the City are also said to have increased by a massive 240% in the third quarter, while total investment increased by 71%.
Speaking to Property Week, Rob Cass, NB investment director said:
“Two thirds of the purchases of City of London office investments were made by overseas investors. For them the fall in sterling makes the prices of UK property look even more attractive – it also partly explains why foreign investors are willing to outbid domestic investors for the prime assets.”
Other parts of London have also seen positive results. In Q3 the West End dropped to a 7.1% vacancy rate, an improvement on Q2’s 8.4%.
Market experts expect that the next step in the property market recovery will be the reduction of incentives that are currently being offered by landlords and office providers.
Simon Smith, divisional director of NB Real Estate said:
“It’s not yet time to hang out the bunting but it is just possible that the worst of the worst is over.”
For more details of serviced office space to rent in London, search online at officebroker.com.