The outlook for commercial London offices
and developments in other parts of the UK is looking more positive.
Commercial property developers were last month optimistic about the future of the market for the first time in eight months, the new Commercial Development Activity report from Savills noted.
With the decline in activity in the public sector stabilising and more private sector schemes on the cards, expectations for the rest of the year have improved.
A 1.2 per cent sentiment reading was posted for January, up from -7.1 per cent during the previous month.
Almost a fifth of commercial property developers think activity in the sector will climb over the coming three months.
While the performance of London offices
has historically been more robust than other regional markets, the study found some developers believe rents will start to rise outside of the UK's capital.
The recent DTZ Global Occupancy Costs: Offices report revealed that the associated expense of renting West End offices
increased by 12.5 per cent last year, with such outgoings expected to rise a further 3.3 per cent over the next five years.
Posted by David Hudek
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