Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON- The West End office market is still under pressure, according to a new report from Lambert Smith Hampton. The firm says take-up has recovered slightly but the full extend of the fall in rents since early 2001 is now apparent.

The most significant deal so far this year has been Lazards’ decision to lease 130,000 sf in Burford’s Mayfair place development. But the rent agreed–£75 ($110) per sf–compares with more than £85 ($125) achieved last year. And the report says the fall in rents is mirrored in other West End sub-markets. Victoria, for instance, has seen prime rents fall from £57.50 ($85) to £52.50 ($75) per sf in a year.

And the broker warns: “The prospects for rental growth this year remain weak as uncertain global economic prospects restrict employment growth and hence requirements for space. We expect the economic outlook to improve significantly in 2003 and whilst in theory this should stimulate rental growth in the West End , we urge caution as the extent of additional surplus space coming to the market has yet to be seen.”

However, some significant deals are in the pipeline: BP Amoco is reportedly looking for 150,000 sf with the Enron HQ at 40 Grosvenor Place and HRO’s refurbishment in Buckingham Palace Road on the shortlist. And Insignia Richard Ellis is rumoured to be ready to quit Berkeley Square in favour of Kingsley House in Wimpole Street.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.