The frenzied scramble for London office space means the capital’s businesses must brace themselves for the “steady march in rent prices”, Land Securities has warned.
The developer of the Walkie Talkie skyscraper posted a doubling in pre-tax profits to £2.4 billion and boss Rob Noel said the UK’s largest listed commercial property company was reaping rewards from an undersupplied market.
“In London there is simply not enough quality office space and we are looking at a steady march in rent prices now,” he added.
The year to March 31 was the culmination of a five-year plan to invest in areas where a shortage of office stock was expected such as Victoria and the City.
During the period, Land Securities agreed deals to let space in Victoria to companies such as Jupiter Asset Management and Gucci’s parent Kering.
Land Securities, which also has stakes in retail assets such as Bluewater, believes the retail market will remain more challenging.
Shares jumped 2.36% to 1342p.
