Posted on Dec 12, 2007

According to recently published research data by agency Knight Frank, within central London, office space rental costs are currently increasing at their fastest rate for seven years, reports the Financial Times. "Last year no one was predicting the type of rental increases that we are beginning to see now," said William Beardmore-Gray, head of Knight Frank's agency in the City. "It is understood that agents are seeking rents of £69.50 per square foot for the last remaining floor of Swiss Re's 'Erotic Gherkin'," he added. Indeed, according to the firm, A-grade locations in the City now command rental yields of £61.50 per square foot, compared with £49 in 2006, while rent-free periods on long-term leases are reported to have dropped to 12 months. Knight Frank is a multinational organisation operating within 36 countries. For anyone seeking a London business address, Ofiz.com offers a virtual office in one of the best commercial areas in the city.