In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in London’s West End have risen by 19.9% over the last year. The prime yield is 3.5%, or a 1.47% premium to the yield on 10-year government bonds. Over the last year, rents have risen by 11.9% and net absorption (on a rolling one year basis) has been 1.8%. The vacancy rate is currently 3.9%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 5.1% of current stock. JLL considers that conditions will likely landlords in 2016.

Source : November 2015/JLL/London/OFF