West End rates could lead to commercial property exodus

High rental rates in the West End could lead to a number of London based firms switching to property in the City, it has been claimed.

According to a report by CB Richard Ellis, entitled 'City and West End Differentials', commercial property in the west is almost double the rate of a City based office, Property Week reports.

And the report claims that the increasing gap between the West End and other regions could lead to a decrease in demand and occupancy in the area.

It said: "Top prime City rents are approximately half top prime West End rents. The largest ever difference between the two markets.

"There are increasing expectations that tenants will start to move out of the West End market raising questions about the sustainability of the market's rents."

The report attributes the high West End rates to Westminster's reluctance to grant planning permission and the vast number of listed buildings in the locale.

Martin Slowe Property Services are Commercial Property Consultants offering a full range of Commercial Property Services.