Canary Wharf’s had fallen behind other rival London districts last year, posting only an eight percent rise in rental growth. This was in comparison with 12 percent for the City and and a 24 per cent jump in Shoreditch. Canary Wharf had, it seemed, started to become unfashionable.
However, with rents becoming increasingly unaffordable for small to medium-sized firms in London’s east end and with Crossrail two years away, Canary Wharf is apparently suddenly back in style.
According to Knight Frank, Canary Wharf will record the strongest office rental growth this year, outstripping other central London areas with a 12.8 percent rise in rents.
Its flagship building One Canada Square became fully let for the first time since the early 90s in November and in another major deal, Deutsche Bank will this year move 4,000 staff from the City to new offices at 10 Upper Bank Street in Canary Wharf.
Rents in Shoreditch, driven by expanding technology firms, will also continue to surge, although at 10 per cent this is more than half last year’s rate of growth. Aldgate is also expected to see rise.