West London leads growth – says Knight Frank

Hamm_tube_sign The Agent says demand is strong in West London centres, particularly Hammersmith, and that this is keeping rents rising.

According to the report, the commercial property market is healthy, paricularly around the M4. The lack of financial services occupiers (compared to the City of London) is helping landlords continue to let space.

"Despite recent turbulence in the financial markets and the negative sentiment in the press the M25 market is expected to witness steady letting activity, with a focus on new and good quality space in key centres to the west of London", says the report.

Hammersmith was the best performing area in the survey, which covered all areas around the M25, including Reading and Watford. Rents there rose by 10% from £38.50/sq ft in the first quarter of 2007 to £42.50/sq ft for the same period in 2008. Knight Frank predict further growth of 12% by the end of 2008.

‘The M25 region, particularly the Thames Valley, experienced its version of the credit crunch in 2001 when the internet bubble burst, and has since shown improving signs of recovery and diverse sector activity,’ she said. ‘The banking and finance sectors have little occupational impact on the M25 leasing market.’

The report is available at Knight Frank’s Website.

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