News: According to research from US-based real estate firm Jones Lang LaSalle, the area of St James, London, is currently the most expensive location worldwide for office property, reports World Property Channel. Strong demand from 'niche financial and technology sectors', coupled with a scarcity of available space, is helping to drive up the prices of property in this area. According to the data, the average annual rental cost for office property in St James currently stands at GBP125 (US$194) per square foot.
BMI View: BMI expects rents for UK office space to remain constant in 2013 from their levels in 2012. While the UK economy escaped the prospect of a double-dip recession, economic growth remains weak. However, UK business confidence is showing signs of rising. As a result, although we expect office rental rates to remain broadly flat, there are indications that demand could rise as the market remains dynamic.