Rents outside the Golden Triangle have and will continue to see robust rent increases as a consequence of rising land values, according to North Rae Sanders
In areas such as Staffordshire and North Nottinghamshire headline rents have gone from £4.25 per sq ft to £4.75 per sq ft in the last two years.
Robert Rae of North Rae Sanders said: “In our experience in acting for both occupiers and owners, one consequence of the high prices being paid by investors has been to reduce pressure on developers to increase rents to maintain profits.
“This has meant that generous incentives have been offered in prime areas and as a result rental growth has been restrained. However, the increasing price of land in these locations together with the stabilisation of yields is likely to drive rental growth in the future – Birmingham has recently seen rents increase from £5.50 per sq ft to £6 per sq ft.
“In the increasingly popular areas on the fringe of the Golden Triangle rental growth has been more robust. Staffordshire and North Nottinghamshire, for example have seen headline rents increase from around £4.25 per sq ft to £4.75 per sq ft in the past two years.”
