Out-Law News 1 min. read
01 Nov 2011, 2:24 pm
Investment turnover throughout central London fell to £2 billion, which is thought to be constrained by a lack of available space at the beginning of the year. The report concludes that the volatile economic environment is likely to keep construction activity low in the near future.
Take up of office space rose to 3.2 million sqft this autumn and volume of transactions increased across all size brackets, the report said. This represents an increase of 40% compared to summer take up and brings the levels back in line with the long term average, it said.
The report said that the availability of office space has continued to fall and it now stands at 15.9 million sqft, which represents a vacancy rate of 6.9%. This finding is supported by a continued downward turn in speculative construction, which now totals 4.7 million sqft.
The report gives an overview of the three areas that make up central London, which are the West End, City and the Docklands.
The West End has performed well, with an increase in take-up to 1.3 million sqft, representing a 14% improvement, and availability rising to 5.4m sq ft. Prime headline rents remained at £92.50 per sq ft and investment turnover continued to rise, now totalling £958 million.
In the City, take-up returned to an average 1.5 million sq ft. Availability fell to 9 million sq ft, reflecting a 7.7% vacancy rate. Prime headline rents remain unchanged at £55 per sq ft and investment availability rose to £3.8 billion, of which £1 billion is under offer.
In Docklands, take-up over the quarter increased to 400,000 sq ft and availability rose 3% to 1.5 million sq ft. Prime headline rents in the area remained at £36 per sq ft and no investment transactions have taken place so far this year.
