Canary Wharf rent to be fastest rising in London this year
Canary Wharf, the east London financial district, will have the strongest rental growth in the UK capital this year as technology companies seek room to grow.
The cost of leasing property will climb 12.6pc to £44 per sq ft in central London's cheapest office neighborhood, broker Knight Frank forecasts, benefiting landlords Qatar Investment Authority and Brookfield Property Partners who gained control of the district last year.
Shoreditch, the hub for technology companies that's north of the City of London, will slip to second place for rental growth after the cost of leasing an office rose almost 24pc last year, Knight Frank forecasts. Midtown, where Goldman Sachs is constructing an office building, will rank third with rental growth of 9.6pc before the 2018 opening of Crossrail, the high-speed rail project that will link Canary Wharf to Heathrow Airport.
Rents in Shoreditch now average £65 per sq ft compared with £70 per sq ft in the City of London.
"Everyone assumed the tech firms could not afford rents that high," said James Roberts, Knight Frank's chief economist.
"The more successful startups from five or six years ago have matured into larger, established companies with deeper pockets.
They now need bigger, modern, high quality offices, and they can afford to pay to get what they want," Mr Roberts added. (Bloomberg)