Posted By: Shea McCabe
BY: William Boston
When Lehman Brothers collapsed last year, the rental market for office space in London went to bust faster than anyone could turn the lights off.
A year later, prime office rents have plummeted and landlords have been offering big incentives to lure tenants into office space in the City financial district. But just as tenants are stepping back into the market, the window to lock in large leases at historically low rents may be closing.
The biggest lease so far this year in the City was the recent leasing of 541,000 square feet of new prime office space to Nomura Holdings Inc. The Japanese bank signed a 20-year lease for the Watermark Place building owned by UBS AG's UBS Global Asset Management and Oxford Properties, a unit of Ontario Municipal Employees Retirement System. Nomura will pay £40.50 ($67.10) a square foot and receive a net rent-free period of at least 50 months.