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Pearl & Coutts react to the Prime London Commercial Property Boom

Top Quote London Estate Agents Pearl & Coutts react to news that London's commercial property market shows no signs of cooling halfway into the year, following early predictions the sector would grow in 2011. End Quote
  • (1888PressRelease) June 30, 2011 - Media headlines have already begun to froth with reports of a prime London boom. Rising prices mean many companies sourcing office space in London are simply looking elsewhere.

    As far back as Dec 2010, some media reports were urging investors to rush to buy commercial premises, promising that the sector would grow, providing increasing returns. By February, central office space in London was the strongest performer, closely followed by commercial retail premises including shops. As the year has unfolded since then, demand has increased and rents are predicted to rise. The Investment Property databank confirmed London commercial property values have entered a remarkable recovery following the economic downturn. By June some media reports indicated prime London commercial property was in fact positively booming. London Commercial Estate Agents had the following to say:

    "Of course there are always some companies who will need to be in the most expensive areas, but for many others, prime property will not be suitable. There are a great many companies who simply don't need that kind of location. There are plenty of other excellent quality properties available in London, with great transport and local amenities, but without the hefty rent. For example, a firm of accountants can easily occupy extremely smart offices without paying an excessive rent. They can still operate within a beautiful period building, close to several tube stations, served by frequent buses and within a stone's throw of superb restaurants, cafes and shopping. We have offices in Soho, Angel and Clerkenwell that fit the bill perfectly - and those aren't the only areas we'd recommend"

    Described in the media as a 'property gold rush', prime office values have risen by almost a third since this month two years ago with rents also rising. Those in the most central areas are predicted by some to rise to close to 60 per square foot by the close of the year. London now stands in utterly in sharp contrast to most other parts of the UK. The situation for businesses looking to rent is also affected by a simple equation of supply and demand tipped against their favour. There is still a shortage of better quality premises, and some predict as longer leases begin to expire, the pressure on space will only get worse. And demand is not predicted to decline.

    "If you only read certain sections of the press, you might think you could easily find yourself over-committed, maybe in premises which lack basic facilities, or perhaps even worse, far from the tube and main roads. In reality, we have been sourcing sustainable premises day in day out for our clients without much difference. We're also continuing to routinely look after the needs of multinationals to gain a presence in the capital," said Pearl and Coutts today.

    Pearl and Coutts commercial property to rent can be viewed online, including office space in London, parking, storage and industrial units at http://www.pearlandcoutts.co.uk

    The team can also be contacted on 0207 843 3788

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