Global Premises

A recent report by the CB Richard Ellis group states that the demand for commercial premises in London is increasing quickly after the recent recession.

The locations that were affected the most by the recession were London, Tokyo, Hong Kong and New York. However with the onset of 2009 these cities are showing increasing demand for rent desk spaces and this has led to an increase in the rental values. The demand for properties in London is mostly from investors abroad as they are making the most of the weak value of the pound.

Peter Damesick heads the UK research for CB Richard Ellis. He stated that the demand for commercial properties will continue throughout this year and next year. This will lead to high demand and low supply. This cycle will cause a hike in the value of office space rents and lease values.

Across the globe rents declined after the credit crunch in 2007. As employers were retrenching their staff banks reported losses of $1.25m.

The value of rents reduced by half in 2007 and it continued to show a great dip for the last 28 months. The report also stated that the major investors were Bank of China Ltd. and Allianz SE as well as Bank of Tokyo-Mitsubishi UFJ Ltd.