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Central London office space take-up reaches 2m sq ft in Q1 2011
Drivers Jonas Deloitte reports Q1 office space take-up figures on par with five year average
Article posted: 07 Apr 2011
Q1 take up of office space in Central London reached 2m sq ft, which is on par with the five year average for Q1, according to a report by Drivers Jonas Deloitte.
Drivers reports that Q1 has seen very few large deals transact, in-fact there have been no deals witnessed over 50,000 sq ft at offices in the City of London so far this year with 75% of deals transacting being below 10,000 sq ft.
Ann Ibrahim, assistant research manager at Drivers Jonas Deloitte, says: “Although we haven’t seen many large transactions complete during the first three months of the year (a contrast to the bumper start to 2010) both the City and the West End have seen average levels of take-up during Q1 with around 900,000 sq ft transacting in the City and around 600,000 sq ft in the West End.”
Availability of office space in London at the end of Q1 stands at 20m sq ft, down 24% from the peak in 2009 and is the lowest availability has been for two years.
It is the Grade A quality accommodation that is really driving the decline of office space in London. Grade A availability has fallen 34% over just the last 12 months, compared with 9% for second-hand space.
Ibrahim continues: “With limited new development completing this year and signs of healthy levels of take-up across London, availability will continue to decline particularly for Grade A space. In the West End, for example, available Grade A space is at its lowest level for two and a half years (at just 380,000 sq ft) and we are seeing landlords and developers pulling out all the stops to turn refurbishment projects back into the market to monopolise on the growing lack of Grade A space.”
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Posted by Janet
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