According to real estate firm Knight Frank, office rents in London are growing faster than in any other major city around the world. Growth in towers like the Shard and the Cheesegrater has increased by 10.7% in the last six months ahead of the other 20 major cities ranked by the real estate firm.
Skyscraper rents are at a record high, with prime office rents in London now being the fourth most expensive at $122 (£79.02) per square foot on an annual basis behind Hong Kong ($255.50), New York ($153) and Tokyo ($125).
Head of commercial research at Knight Frank, James Roberts said that renewed appetite for exclusive space is partly responsible, even though construction started to the backdrop of the Euro Crisis a few years ago, leading commentators to say developers got their timing wrong. Companies are also increasingly footloose as oil, tech and private equity companies relocate across London from more traditional West End locations.
San Francisco had the second quickest growth of 8.2% due to expansion in the technology sector in Silicon Valley with a square foot price of $105. There was no growth in six cities including Dubai and Melbourne and declines only in Beijing and Moscow.