Leadenhall_PresentationVersion

Market Development
The demand for Central London office space has continued to
increase during 2014. The increasing demand also impacted on
the rental values of the area. Consequently, the office market
landlords have increased the rents by circa £2.50 and £7.50 per
ft 2 per annum since 2014. For the next two years, the rents are
expected to continue rising.
Comparison and Expectation:
Q1 2015 Q1 2016 Q1 2017
City Prime £62.50 £65.00 £67.50
The increasing rental prices encouraged the signing of pre-letting
agreements, which enabled the tenant to benefit from a lower
commencing rents once construction has been completed.
The Leadenhall Building was 50% pre-let prior to completion.
The proliferation of pre-letting agreements, however, is limiting
choice and accelerates the already existing trend for rent increase.
However, according to a market research of Carter Jonas, the current
wave of office developments is likely to restore by 2017/2018
the stability between supply and demand.
References
Carter Jonas: http://www.carterjonas.co.uk/our-services/~/media/BF71AF1B0F854D09BD82542AA35E06EF.ashx (access: 16.3.16)
Image: http://www.theleadenhallbuilding.com/wp-content/uploads/2014/08/The_Leadenhall_Building_Aerial_101-1024x684.jpg (access: 16.3.16)
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