As the countdown to the World Championships reaches its final chimes, Knight Frank has looked back at prime commercial rental growth performance in the five years since the 2012 Olympics to see which markets are now on the podium.
- Victorious with a gold medal is Clerkenwell/Shoreditch where prime headline rents have grown 65% since 2012
- Receiving the Silver medal is Aldgate/Whitechapel where rents have grown by 51% since the London Olympics
- Tied for Bronze medal are Euston/King’s Cross and Southwark, which both saw growth of 41%
- A notable mention should also go to Fitzrovia, where a personal best of 32% growth wasn’t quite enough to secure a podium spot
| Area | Q3 2012 | Q2 2017 |
| Clerkenwell/Shoreditch | £42.50 per sq ft | £70.00 per sq ft |
| Aldgate/Whitechapel | £36.50 per sq ft | £55.00 per sq ft |
| Euston/King’s Cross | £55.00 per sq ft | £77.50 per sq ft |
| Southwark | £45.00 per sq ft | £63.50 per sq ft |
| Fitzrovia | £62.50 per sq ft | £82.50 per sq ft |
A magnificent showing, although while these markets benefited from delivery of quality stock, they also felt the performance-enhancing effects of their future Crossrail offering.
Patrick Scanlon, Partner, Central London Research, said “Over the last five years, the markets surrounding the traditional cores in both the City and West End, have shown particularly strong growth. They have offered quality product, with good amenity, and relative value. These areas will continue to see healthy interest as we move past the World Championships”.
Looking forward over the next five years, we forecast Clerkenwell/Shoreditch’s gold medal form to continue, with rents set to increase as stock availability tightens, and the impact of Crossrail is more keenly felt. Southwark will share the podium in gold medal spot, as the delivery of quality new stock attracts tenants to the western part of the submarket. The Midtown and Victoria markets will take silver and bronze positions as new stock generates tenant interest.
