Will regional office markets follow London’s lead in 2011?

Notwithstanding some less encouraging recent news (e.g. yesterday’s reports of looming job cuts at Barclays Capital), London’s City and West End office occupier markets are in recovery mode. Past experience suggests that the capital’s rebound should be mirrored in regional office markets next year. But given the weak outlook for the labour market and high vacancy rates, the pace of recovery in regional office rents is likely to be very modest.