The bright lights of Piccadilly gain power from the Olympics

The cost of advertising at the Piccadilly Lights has doubled and is only likely to get more expensive as the Olympics begin.

So says Land Securities, the owner of one of the world's most famous advertising hoardings and one of London's top property developers.

Land Sec takes in several million pounds a year from the Piccadilly Lights.

Chief executive Francis Salway said today: "The level of rent that we have agreed reflects the focus that there will be on the Piccadilly Lights in a years time. Visitors will be spending a lot of time in central London."

The company is confident enough in the economy to begin building new offices without having pre-let any of the space. Retail developments do require confirmed interest from shops, but there has been sufficient from Primark, Sainsbury's, John Lewis and others to justify new space.

Said Salway: "We expected that retail insolvencies would be slightly higher than they were in 2010. In this quarter they came in slightly lower."

Voids - empty space - are down from 4.2% to 3.9% in the first three months of the year. Property sales were up 8% at £177 million.

Said Salway: "The outlook for development in London remains attractive and despite the mixed messages in the retail sector, our leasing activity demonstrates that the stronger retailers are looking to take new space."

Two-thirds of Land Sec's business is inside Greater London.