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Regional office market rents to outperform London

Office rental growth in London and RoUK was similar in the third quarter. But as the recession takes hold London firms will have a greater incentive, and opportunity, to make savings from the shift to working from home. That will cut demand just as a large amount of new space is set to hit the capital. By contrast, the RoUK pipeline is historically tight. Accordingly, the risks to our forecast that London rents will be about 1% below their current level by end-26, compared to a 0.5% decline in RoUK, lie to the downside.  

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