Cluttons warned that the South Bank had not been able to achieve a critical mass of new development before the market lost momentum and, consequently, the area is still regarded as a fringe location. As a result, the slowdown has hit the area hard and prime rents have fallen by 25% over the past nine months from £45 ($63) per sf in March 2001 to £33 ($47) per sf now. And Cluttons believe that a further fall of up to 15% is on the cards for 2002.
Total available space on the South Bank has risen by 40% to 540,202 sf since Summer 2001 and take-up fell to a lowly 60,709 sf over the same period. And at present there is over 5.38 million sf of development in the planning pipeline, although Cluttons question how much of the office space with planning permission will actually be developed in the current economic climate.
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