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News Release

LONDON

JLL predicts Western Corridor prime rents will average £40 per square foot by 2017


LONDON, 16 September 2014 – JLL research forecasts that the average prime rent in the Western Corridor will reach £40 per square foot (psf) by 2017.


Growing active named demand, declining ‘Grade A’ vacancy levels and an increasing amount of office stock being lost to residential use as a result of Permitted Development Rights are all placing an upward pressure on rents. These are trends which JLL research indicates will continue over the next few years.


In addition, the market will also benefit from Crossrail connectivity and infrastructure improvements in the wider Western Corridor, which will contribute to increasing rents. Prime rental growth is expected to average 4% per annum, reaching £40 psf by 2017. 


James Finnis, head of South East office agency at JLL said: “The signs of rental growth in the Western Corridor are evident – the West London market is the epicentre of this rental growth, due to high levels of demand and the lowest Grade A supply for 14 years.


“Increasing rents create the environment for stock renewal – this is essential in a market which has seen historically low replacement rates for a number of years. The infrastructure forecast for our market reinforces the Western Corridor’s position with fast and easy access into Central London and immediate proximity to Heathrow Airport.”


Ben Burston, head of UK offices research at JLL said: “Our forecast for strong growth in Western Corridor rents reflects a growing imbalance in supply and demand and our expectation that the market will continue to tighten in the near term.

“Employment growth is the strongest since the late 1990s, whereas new office product is thin on the ground in several centres, and the current level of committed development will not see supply catch up. The West London market has already responded to this dynamic, as evidenced by strong growth in Chiswick and Hammersmith, and as time goes on we anticipate that this pressure will filter further outward, encompassing markets such as Reading, Bracknell and Slough.”