Knight Frank has stated that in 2010 office market prime rents in London’s City and West End will show improvement due to the recently flourishing stock market and an increase in tenant demand over the summer.

With City rents down by more than a fifth in 2009, it expects them to rise from £42.50 to £58 sq ft by the end of 2013, an increase of +37%. The West End meanwhile will potentially see an increase of +42% to £92.50 sq ft by 2013 having already witnessed a -30% decrease in 2009.

Will Beardmore-Gray, head of City leasing, said: “The City has seen a marked increase in activity since its low point in quarter one. There is a definite upwards trend in activity emerging - it is certainly not a fresh boom, but it is a steady return to normality.”

The report continued that whilst in real terms City office rents are at their lowest for over 20 years and West End rates for over 13 years, occupiers have been tempted back to the market and are exploiting the tenant-friendly environment due to the rapid rent re-pricing.

Bradley Baker, head of central London tenant representation, said: " The office market is beginning to emerge from the shadow of the banking crisis. These market dynamics are offering our tenant / occupier clients some unprecedented opportunities. Rents are low by historic standards, and landlords are willing to offer generous incentive packages”