Knight Frank forecasts strong London growth

Central London office rents will show continued strong growth over the next two years, driven by a severe imbalance between demand and the supply of quality space, Knight Frank reported at its annual Central London office market breakfast at The Dorchester, in London.

Knight Frank forecast increased levels of demand from both lease breaks and expiries, and the expansion of business sectors such as specialist financial, technology, media & telecoms, and renewable energy.

Inward investment from Asia-Pacific firms would generate demand for London office space, it said, and the imbalance between demand and supply would change the face of many districts as competition for space in core markets caused displacement of tenants.

Knight Frank said a similar demand and supply imbalance in the investment market would also drive pricing through restricted available stock in the core markets and increasing overseas demand, particularly from the Far East