LONDON, Jan 21 (Reuters) - Top-end rents for prime office space in London are expected to fall by between 16-19 percent by the end of 2010, as the onset of recession in the UK causes occupier demand to plunge, a report said on Wednesday.
Demand for office space in the city's most expensive West End district had fallen 57 percent in 2008, while the total take-up rate of 3.2 million square feet was 30 percent down from 2007, said property consultants Jones Lang LaSalle . "This downward trend in occupier activity will continue for the foreseeable future until we see some stability in the wider economy ... 2009 could be one of the most challenging years on record for take-up in Central London," said JLL head of office Neil Prime.
London's West End, home to UK's financial services firms and hedge funds, had been ranked the world's most expensive office location by consultants Cushman & Wakefield in February last year, followed by Hong Kong and Tokyo.
JLL forecast that top rents in the West End will fall from 95 pounds ($130.6) per square foot (psf) at end-2008 to 80 pounds psf at end-2010, while rates in the City of London district will fall from 58.50 pounds to 47.50 pounds psf over the same period.
(Reporting by Daryl Loo; Editing by Rupert Winchester)
(See www.reutersrealestate.com for the global service for real estate professionals from Reuters)