in the East End will experience a rally in rents following the Olympic Games 2012.
That is according to the British Council for Offices (BCO), which explained that London offices
in this area will enjoy rent rises, so long as certain criteria are in place.
BCO chief executive Richard Kauntze said for rents to increase, there needs to be robust public transport in place, along with large volumes of tenants.
"With good infrastructure links and retail development as well, it will have a positive impact on office rents I have no doubt. But I think the scale of any office development around the Olympic Park itself will probably be quite limited," he stated, adding the significance of the regeneration scheme means that East End offices will see positive results.
However, Mr Kauntze did claim that Canary Wharf - which is also in east London - is extremely popular and as such, the offices in and around the Olympic Park will have tough competition in attracting tenants.
A recent Confederation of British Industry (CBI) and KPMG London Business Survey found more than 60 per cent of businesses with London offices
think public transport will improve on the back of the Games.
Over three-quarters of firms believe the east of the city will be painted in a positive light because of the sporting event, while 92 per cent noted London will benefit on a global scale as a result of the Olympic and Paralympic Games being held there.
CBI London region director Sara Parker said the event "will showcase London as a world-leading business location and highlight the success of UK firms in delivering a complex construction and infrastructure project".
The Olympic Games commence on July 27th next year and will run until August 12th. The Paralympics will then begin on August 29th and finish on September 9th.
Posted by John Evans
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