And Neil Chegwidden, the firm's Head of Research predicted that the strength of the London and UK economies could easily push rental levels up to £65 ($93) per sq ft in the next 12 to 18 months.
A total of 830,000 sq ft of space was let in Victoria last year and the vacancy rate now stands at just 2.3%. As a result upward pressure on rents in the area is likely to intensify as 2001 progresses.
Key to the continued strength of Victoria's fortunes will be Railtrack's proposals for the redevelopment of Victoria Station. The plan includes 750,000 sq ft of new offices in two landmark buildings either side of the station and 60,000 sq ft of extra retail space.A detailed planning application will be submitted in Autumn 2001, with work on site expected to begin in September 2003.
Chegwidden said 'This development is one of a series of large schemes set to dramatically improve Victoria and the level of supply in the Victoria area in the longer term. However, with no new developments or refurbishments due to complete until 2003, the immediate future remains one in which demand will far outweigh supply.'
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