Angus McIntosh presents some property predictions
Despite ongoing predictions of gloom and the anticipated impact of the recent Comprehensive Spending Review (CSR), the financial sector in the City of London and the West End of London are bouncing back.
There has been an increase in office activity and prime rents in the City have increased from a low of £43 per ft² a year ago and are likely to exceed £55 per ft² by next year. The end result is, particularly with far less generous rent free incentives for brand new buildings, the net effective rent paid by an office occupier for a new building may rise by more than 40% this year. The cost of renting an identical building in Liverpool, Exeter, Nottingham or Newcastle may only be 25% of the high rental values in London, and may fall further. In parallel, the retail market will go through an ongoing squeeze; while prime high streets have done remarkably well during the recession, secondary high streets are suffering. The true winner is the food
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