Office rental levels in Croydon are set to keep rising due to low stock levels according to Stiles Harold Williams.
In their South East office report for the third quarter, the company says that developers which speculatively build or refurbish commercial space are likely to be rewarded by tenants wanting to sign leases.
It quoted £34 per square foot having been achieved at Corinthian House last year, with similar levels expected at Renaissance, where quoted rents are £34.50 per square foot.
The report also discussed the ongoing developments at Ruskin Square after HMRC took the entirety of the first office block on Stanhope & Schroders’ development.
“Building Two at Ruskin Square will comprise 200,000 sq ft,” it reported. “HMRC, who took the whole of phase one, have an option on phase two. News is awaited as to whether this option will be exercised or whether the scheme will be constructed speculatively.
“Croydon continues to attract occupiers from central London who look to take advantage of the quick rail journey times into central London and the cheap occupier costs compared to Central London.
“The opening of Boxpark, the success of Ruskin Square and the advent of Westfield and Hammerson’s supermall is evidence that Croydon is changing shape and will continue to attract more companies to the town.”