This brought bringing the full-year total to 9.1 million sf; 30% down on 2001, and over 20% below the ten-year average of 11.5 million sf. Reflecting the continued instability in financial markets, the City financial district was hardest hit. Only 600,000 sf was taken up in the final quarter to bring the annual total to 3.6 million sf. This is 30% below the City's ten-year average of 5.2 million sf per annum.
In the face of this paralysis in the leasing markets, headline rents are falling. CB Hillier Parker said West End rents are down 9% on the year and City rents down 15%.
The Central London vacancy rate continued to increase, reaching 18.5 million sf, or 7.5% of stock, at the year end. And more increases could be on the cards according to Nick Ridley, Senior Director, Central London offices at CB Hillier Parker. "The tenant market is clearly still very subdued," he said. "But we are still completing significant deals on behalf of both landlords and tenants, albeit at softer prices and with longer gestation periods than is normal."
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