Research recently undertaken by commercial property analysts CoStar has revealed that office rents in Hertfordshire are rising faster than in any other part of the UK.
Average rents across the county for 2017 stood at £21.56 per sq ft, an increase of 17.2% over the previous 12 months. Office rents further north in Luton and Bedfordshire also saw strong growth, increasing by 11% over the year to average out at £13.27 per sq ft.
Meanwhile in their North London and Herts market report for Q3 of 2017, commercial property experts Glenny claimed that rents for prime office space had risen to £27.50 per sq ft in areas such as Enfield, with secondary, or good quality used offices reaching £20.00 per sq ft. Office rents in Welwyn Garden City were quoted at £21.00 per sq ft and £17.50 respectively.
Glenny also stated that activity in the office market was lower than predicted for the first three quarters of 2017, and reported an increase in the availability of both prime and secondary space across the region. However, demand for office space was showing signs of improvement latter in the year, with the number of property enquiries matching levels last seen in mid-2015. Like CoStar, Glenny reported increases in rents across most areas of North London and Hertfordshire in the previous 12 months, particularly for prime office space, and quoted increases of 25% for Enfield and 16.7% for Welwyn Garden City.
The findings make for interesting reading for those business tenants who are considering moving premises or renewing their leases. However, what is not explained is the reasons why the office rents in St Albans and the rest of Hertfordshire registered a staggering increase of 17.2% compared to the same period 12 months earlier! We highlighted many people’s concerns for the fast-track conversion of office blocks to residential use which as not required planning permission for change of use.
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