The central London office market is expected to emerge from the current downturn next year, as availability starts to fall due to fewer development completions and an improving economy in 2010.
Knight Frank predicted that the office leasing market will see supply peak in 2009 then decline thereafter, with rental growth returning in 2011:
• Central London availability to peak at 27 m sq ft in 2009, before falling by 36% from early 2010 to the end of 2012
• Rents in central London are forecast to fall further this year then rise in 2011
• Take up will fall to 7m sq ft in 2009, then will begin rising again next year, recording an average increase of 27% per annum between 2010 and 2012.
See the attached file for the full report.