Commercial property rental decline slows in London

Research has revealed that the pace of declines in commercial property rental values slowed in the second quarter of this year.

The figures from Jones Lang LaSalle found that the West End recorded stable results for the period analysed, while the City market experienced a reduction of just seven per cent.

Take-up volumes in the latter region were almost double those of the first quarter, while take-up in the West End was down 61 per cent on the same period last year.

Bill Page, head of UK offices research at Jones Lang LaSalle, said the outlook for the London market is "very good".

He added: "Investors entering the market this year, on the assumption that rental falls to date have already driven the majority of 2009's negative performance, will enjoy compelling performance driven by returns in 2012 and 2013."

James Roberts, head of central London research at consultancy firm Knight Frank, recently claimed that there are "encouraging signs" of recovery in the commercial property market.