Prime rental growth for offices in the West End set to be poor in Q4 2012.

According to the London commercial property agent Morgan Pryce, located both in the West End and in the City of London, prime rental growth for offices in the West End will be weak in Q4 2012.

Headline rents for offices in the West End continued to be steady among almost every West End office sub-market. Offices in Mayfair and offices in St James’s are still achieving the highest average prime rents of £95.00 per square foot, which has been the case since early 2011.

Rent-free periods

Morgan Pryce, the London commercial property agent, has also found that incentives have not changed either, for West End Offices, at 18 to 21 months rent-free on-prime and 21 to 24 months off-prime on 10-year leases. Morgan Pryce has been able to achieve these lengthy rent-free periods as it has an experienced team with a reputation for expertise in negotiating the best lease terms for our tenants. As Sally Brough, Associate Director at Morgan Pryce, explains, “if negotiations with landlords are approached in the correct way, it is possible that tenants who are looking for offices to rent in the West End could benefit from considerable savings.”

Rising supply of offices in the West End

Morgan Pryce, the London commercial property agent, puts its forecast for low rental growth for offices in the West End down to the rising supply of such offices, compounded with declining take-up levels. However Tom Lax, surveyor at Morgan Pryce, believes “there is potential for increased growth in 2013 with improving economic confidence filtering through to the occupier market.”

Morgan Pryce is a specialist tenant acquisition agent with offices in Oxford Circus and The City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.