Has the sustainable level of London office rents risen? - Capital Economics
UK Commercial Property

Has the sustainable level of London office rents risen?

UK Commercial Property Focus
Written by Capital Economics Economist
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Office rents in central London have never been higher. Even in real (inflation-adjusted) terms, they are well above the levels which appear to have been sustainable in the past. However, since the credit crunch we have seen a large and steady rise in the productivity of office space, implying that the price that firms should be willing to pay for it should also have also risen.