City office rents rocket as recovery gathers pace

Office rents in the City soared by nearly 12% at the end of last year as the recovery in the London commercial property market gathered pace.

Property agent NB Real Estate today said average rents in the Square Mile rose from £42.50 per square foot to £47.50 in the fourth quarter of 2009.

The 11.8% quarterly rise was the biggest since records began in 1988 and followed two-and-a-half years of decline.

James Gillet, director of City offices at NB Real Estate, said: "This is a phenomenal recovery in rents in such a short space of time.

"When you consider just how far rents had fallen and how cheap some office space in the City of London had become we shouldn't be surprised to see such a violent recovery in rents.

"Landlords and the financial institutions across the City and Docklands are far more optimistic than they have been in years."