Office rents in Mayfair and St James's, are set to be pushed up to £118 per sq ft by 2017, due to a shortage of prime supply.

Prime West End rents in the first quarter rose 3% to £95 per sq ft, and could reach £118 per sq ft over the next five years, CBRE said this morning at its growth picture for London offices presentation in Mayfair.

During Q1, a number of rents in excess of £100 per sq ft were agreed. At 23 Savile Row, W1, US investor Angelo, Gordon & Co, and Viking Global Investors, both agreed to pay £105 per sq ft.

Kevin McCauley, senior director, UK research at CBRE added that average City rents of £55 per sq ft could rises 20% by 2017, to £66 per sq ft.

McCauley said: "Availability [across Central London] will go down from the end of 2014 to 2016."

He added that while there are a number of new schemes underway, around 25% of the future space at completions due by 2016, has already been prelet.

Prelets include property PR adviser FTI Consulting taking almost 70,000 sq ft at Helical Bar's 200 Aldersgate Street, EC1.

CBRE also said Central London investment volumes dropped 20% in the first quarter to £2.8bn, owing to limited stock on the market. Overseas parties accounted for 61% of the transactions.