West End update 11th June 2012

Cluttons have released their latest West End office report.

Despite the current economic and political backdrop, the underlying drivers of London's economy remain encouraging, although ongoing business caution has dented prime West End office lettings activity.

Those requirements that are in the market are focused increasingly on locations that offer value with vitality. This is driving rental growth in 'Cool Crescent' sub-markets such as Covent Garden, Noho and Fitzrovia.

The investment community has followed this trend with strong demand for assets with opportunity value in locations to the edge of the prime core.

Overseas investors continue to dominate activity, with the West End office market viewed as a secure home for capital during this period of uncertainty. This is joined by well-financed UK property companies seeking redevelopment opportunities, including assets with residential conversion potential.