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Commercial rents outside London 'will recover'

Commercial rents outside London 'will recover'
Date: 2/22/2010

Business mortgage holders may be interested in the Office Market Conditions Across the UK report by Jones Lang LaSalle.

According to the report, office rents outside of the capital are predicted to recover this year.

However, the company explained that this is more likely due to a steady drop in supply and not because more people are demanding such commercial property.

Grade A offices in particular are expected to be affected by this, which could ease the pressure for rents to decrease.

A widening gap between prime and secondary market conditions is thought to follow this trend by 2012.

Director of agency and development in the firm's Edinburgh office Cameron Stott said generalisation is difficult.

However, "further outward movement in rent free periods were seen in the Scottish markets during quarter four 2009," he explained.

Buy to let landlords who own "secondary stock" may also see mounting pressure to cut rents so that tenants fill the empty spaces, the report confirmed.

Jones Lang LaSalle notes that it specialises in real estate services and employs more than 30,000 people.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.

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