City of London commercial property market tipped for resurgence
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The City of London is set to lead the UK office market resurgence in 2010, a new survey suggests. According to the King Sturge: Office Markets 2010 report, the City of London is seeing increased demand for office space following the end of two years of instability caused by the global economic downturn.
This comes after office take-up was 24 per cent higher in 2009 than in 2008.
In all, 3.8 m sq ft was acquired last year in 186 transactions, with highlights including the decision of Normura to secure 541,000 sq ft of office space at Watermark Place in EC4.
Additionally, levels of supply are also falling, with vacancies in the City of London dropping to 11.1 per cent by the end of 2009 having peaked at 13.3 per cent earlier in the year.
As a result, the City of London office market has been assessed as offering "real value" to investors due to expected rental growth and improving prime yields.
Earlier this week, Bloomberg reported that Brookfield Asset Management is ready to start construction of the 54-storey Pinnacle tower in the City of London.
In all, 3.8 m sq ft was acquired last year in 186 transactions, with highlights including the decision of Normura to secure 541,000 sq ft of office space at Watermark Place in EC4.
Additionally, levels of supply are also falling, with vacancies in the City of London dropping to 11.1 per cent by the end of 2009 having peaked at 13.3 per cent earlier in the year.
As a result, the City of London office market has been assessed as offering "real value" to investors due to expected rental growth and improving prime yields.
Earlier this week, Bloomberg reported that Brookfield Asset Management is ready to start construction of the 54-storey Pinnacle tower in the City of London.