Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-The London office market has cooled during the first half of 2001 after record performance last year, according to new research from Knight Frank. The slowdown in the US economy and uncertainty over the outlook in Europe has led to a cautious approach among potential occupiers. Prime rental growth has slowed while fringe locations have become more attractive to traditional core tenants, the agent claims.

Knight Frank’s Central London Quarterly research shows supply rose by 21.6% over the second quarter of 2001 as space was returned to the market. But take-up also increased over the same period by 20.6%. A surge in activity in the City boosted the quarterly figures, with a 72.7% quarter-on-quarter increase in leasing activity. Conversely the West End saw a quiet quarter with a fall of 33.1% in transactions.

Knight Frank Associate Sarah Bate noted: ‘Demand for large new buildings remains high. Quarter 2 saw the pre-lettings to Lehman Brothers at Canary Wharf, to Ernst & Young at More London and to Marks & Spencer at Paddington Basin. This shows the attraction of locations outside the traditional West End and City core markets.’

On Knight Frank’s calculations there is currently 16.5 million sf of office space under development across central London, the majority of which is pre-committed. Bate commented: ‘A lack of speculative development will do little to help the shortage of new space on the market at present.’

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.