Prime West End office rents have jumped 19% over a year to be well ahead of pre-pandemic levels, as businesses hunt for the most desirable space, fresh research shows.
Rents in Mayfair and St James’s for new and high-end offices stood at £140 per square foot in the final quarter of 2022.
That was up from £117.5 a year earlier, and £112.5 for the same period in 2019, just before lockdowns meant more people than ever were working at home.
The data from property agent BNP Paribas Real Estate shows City rents dipped slightly during part of the Covid crisis, but they are now back to where they were at the start of the pandemic: £72.50 per square foot.
While many older workspaces will become less appropriate for businesses as they further embrace hybrid working, property developers think demand for new and sustainable London offices will remain solid.
Simon Knights, head of West End agency at BNP Paribas Real Estate, said locations and building brands are important to many private equity and finance occupiers, as well as their investors.
He added: “It provides the very best environment and ensures they will capture the very best staff. Firms are hungrily bidding for new and amenity-rich spaces.”
James Strevens, head of City leasing at the company said: “Occupational demand for the City has an eagle-eyed focus on quality and amenity with a desire for premium offices offering superior workplace experiences and, of course, enhanced ESG credentials.”
