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Office demand recovering, says Derwent London

Real Estate Sector Updates

According to property group Derwent London, demand for new office space in London is beginning to recover thanks to the rapid deployment of vaccines in the United Kingdom.

FTSE 250 developers have raised expectations for rent growth in the coming months, increasing the value of their investment portfolio by 1.4% to £ 5.4bn in the first half of this year, one of the losses recorded during the pandemic. He said he had reversed the department.

“The pandemic continues to influence the London office market, but there are signs that its grip is beginning to loosen as the economy recovers and London’s business confidence grows,” the company said Tuesday.

Vacancy rates continue to rise across the market as companies withdraw their leases or refrain from signing new ones until they are more certain about their return to work. Overall, vacancy rates in the capital rose from 8% to 9.3% in the first six months of the year, according to CBRE.

However, new or recently refurbished offices haven’t been hit hard. Derwent vacancy rates rose from 1.8% to 3.3% in the six months to June 30, but have since fallen to 2.4%. The company has collected 95% of the rent payable by office tenants on the most recent payment date.

Derwent increased its interim dividend by 4.5% to 23p per share.

Office demand recovering, says Derwent London Source link Office demand recovering, says Derwent London

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