Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Central London saw a surge in office availability during the third quarter of 2001, with vacancies rising from 2.7% to 4.1% in just three months, according to Healey & Baker, the EMEA arm of Cushman & Wakefield. And rents in the key West End market have started to fall, say the agents.

The Healey & Baker report points out that despite an increase in supply, the stock of Grade A space is still limited, and availability is still significantly below the average over the past ten years. And despite a 28% slump in identified requirements over the quarter, office demand is still running ahead of the ten-year average.

Across London as a whole, the financial and banking sector still has the biggest requirement for office space, although in the City lawyers are now the biggest takers of space. In the West End, the media and marketing sectors are the most active.

Take-up in the quarter totalled 2.23 million sf, down by 25% on the second quarter, although that quarter’s figure was inflated by just one deal: Barclay’s Bank’s one million-sf acquisition at Canary Wharf. And by the end of the quarter 8.8 million sf of office space was available.

Reflecting this weakening market backdrop, prime rents in the City remained static at £65 per sf while prime levels in the West End fell back from £85 ($122) to £80 ($115) per sf.

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.