Businesses tempted to Canary Wharf as one of the most affordable places in London to rent office space are in for a nasty shock when Crossrail eventually opens, according to a new study.
Property agent Knight Frank forecasts that once the delayed Elizabeth Line project is in operation, rents in Canary Wharf will increase 23% to £58 per square foot.
The new line will give firms quicker journey times to the City and West End.
Faisal Durrani, associate at Knight Frank said: “Our forecasts show that Canary Wharf is, at 17%, likely to experience the third strongest rate of rental growth in Central London over the next five years, with only the City Core and Southbank likely to see slightly stronger rises of 17.1% and 17.8%, respectively.”
Landlords are benefiting from strong demand but limited supply. Durrani said his firm is tracking 28 active office requirements over 100,000 square feet, however only 18 schemes in the capital can service these. Of these 18, nine are located in the Docklands and five are in Canary Wharf.
