Breaking NewsGlobeSt.com will be offline for scheduled maintenance Friday Feb. 26 9 PM US EST to Saturday Feb. 27 6 AM EST. We apologize for the inconvenience.

 
X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-The slowdown in the City of London office market is continuing, with take-up falling by 23% in the second quarter of 2002, according to King Sturge. The broker calculates that just 448,000 sf was leased during the second quarter.

This was compounded by a 27% increase in availability over the quarter, taking City vacancies to 5.9 million sf or 7.9% of total stock. However, King Sturge says the figures were distorted slightly because a number of deals failed to complete in time for the end of the second quarter. As a result, space under offer has increased by 35% to almost one million sf.

Looking ahead, the firm is more optimistic about the second half of 2002. It expects a number of pre-lettings, mainly from within the legal sector, to boost confidence in the market.

Rental evidence at the top of the market is hard to come by given the lack of deals, but the best rent King Sturge could find over the quarter was £52.50 ($80) per sf paid at 111 Old Broad Street. Quoting terms for the best accommodation remain static at £60 to £62.50 ($92 to $96 per sf). But King Sturge warns that landlords are going to have to give ground if the current imbalance between supply and demand persists.

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

GlobeSt

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.