Central London’s office space leasing activity enjoyed a good third quarter, according to well-known property consultant and real estate broker Cushman&Wakefield.
More than two million square feet of commercial space was leased in the West End, Docklands and the City, representing a 54 per cent jump compared to last quarter’s figures. The capital’s office space market has remained positive despite the weak economic climate and muted growth in other property sectors.
So far into the year, a little more than two million square feet of office space has been let at West End, with the notable ones being Camden PCT at famous King’s Cross and Regent’s Palace’s Debenhams, both of which amounted to about 150,000 square feet of the total space let to businesses.
The demand in West End was highest among technology, media and telecommunication industries. The office space supply in West End, however, fell from the first few months of 2011 and the current rate of vacancy stands at 4.6 per cent. More recently, close to 200,000 square feet of new office space was made available across more than four buildings.
City & Docklands witnessed a 75 per cent spike in take-up from the previous quarter. More than 50,000 square feet of office space was let and another four million square feet is presently under construction.
However, rents in prime areas have been stable, with a mere three per cent growth last month. This has made office space in the capital’s sought-after areas quite affordable, keeping in mind the prevalent strong demand and positive future outlook.