But the picture looking ahead is a bit brighter, with nearly 463,000 sf currently under offer. However, CBHP warns: "Securing deals remains challenging, particularly for landlords competing in a market over-supplied with occupier space. The ability of Landlords to protect headline rents through incentive packages is diminishing given the current levels of rent free periods being granted, therefore downward pressure on rental levels will undoubtedly be a significant feature of the market over the next 12 months."
With over a million sf of unlet developments completing in the quarter, availability increased by a further 2.2% to 11.7 million sf. However, developers are now looking to turn off the supply tap, and only 1.3 million sf of speculative space is still under construction all of which is due to complete this year.
"Developers are now completing directly with occupiers to secure what limited demand there is," said Mike Ayton, Senior Director, Office Leasing & Development.
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