West End take-up bounces back – GVA

GVA says the vacancy rate for office space in the West End of London fell to 4.6% during the third quarter of 2012, from 5.0% in the previous quarter, with take-up bouncing back after an exceptionally quiet Q2. The total amount of West End office space taken up in Q3 was 791,125 sq ft, up 88% from the previous quarter, and 16% above the five-year quarterly average, the firm notes.

A total of 3.8m sq ft of office space is now available across the West End, GVA calculates, and there was 2.7m sq ft under construction at the end of Q3. Prime rents in Mayfair are at £95.00 per sq ft with 17 months rent-free as a result of the continued lack of supply in the market, while super-prime rents have risen to £115 per sq ft with 12 months rent-free, GVA says.

GVA notes that property companies were the largest investors in West End office property during Q3, accounting for 36% of investment, with institutional investors close behind at 30%.