Outlook for Central London office rents in 2011 now less positive

Central London office rents will rise further. However, the revival of the medium-term development pipeline should ease occupiers’ fears about being stuck in unsuitable premises. Together with the faltering economic recovery that we expect in 2011, this should dampen leasing market activity. Rather than 10%, we now think IPD City and West End rental values will grow in 2011 by about 5%.

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