Allen & Overy's decision to take 750,000 sf at 1 and 10 Bishop's Square, E1 helped boost take-up in the three months to March to 3.6 million sf, with the strongest in the fringe and Docklands markets. However availability in central London is still increasing and reached 17.4 million sf or 8.5% of stock at the end of the quarter.
DTZ says rental levels are remaining relatively steady. After a significant drop at the end of 2001, Mayfair rents have now levelled off at £72.50 ($105) per sf. Although rents for new City space softened slightly in the last quarter, they are not expected to fall further.
Jonathan Evans, Head of West End offices at DTZ said: 'Although there is no denying the significant increase in availability of office space, fuelled in part by occupiers subletting surplus space, the market in general appears to have stabilised with increased activity in the fringe markets, and I fully expect take-up to now rise throughout the rest of the year.'
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