Analysis of patterns in office rents in England and Wales

Studienarbeit aus dem Jahr 2012 im Fachbereich BWL - Investition und Finanzierung, Cass Business School, Sprache: Deutsch, Abstract: When looking at research on office rents in the United Kingdom provided by real estate agents, such as Colliers, it becomes obvious that headline rents vary significantly from location to location. According to Colliers International (2012a), prime rents in the Mayfair are at £100.00/Sf p.a. whereas places such as Londenderry (North Ireland) are estimated to yield £10.50/Sf p.a for Grade A units (Colliers International, 2012b). However, it is not necessary to look far as to Northern Ireland since the deviations in rents in London are themselves significant. For example prime rents in the Eastern City (£22.50/sf p.a.) are a fraction of prime rents in Mayfair (Colliers International, 2012a). This paper draws on main stream theories of rent and urban economics to single out factors which determine office rents in England and Wales. Section two is a brief overview of theories of rent as well as systems of cities. A comprehensive set of data was analysed with regards to the factors influencing rental levels in accordance with these theories. The results are presented in the third section. The paper closes with a conclusion on the findings. [...]