Under offer space in Central London office market at highest level since 2000
A total of 4.5 million sq ft of space was under offer by the end of May 2015, an increase of 25% on April, lifting under offers above the long-term average of 2.7 million sq ft.
Commenting on the research, Chris Vydra, Executive Director at City Agency CBRE, said: “The high level of under offers in the market indicates that momentum is building. Take up was extremely strong in 2014 and it is clear that this is being replicated in 2015. With availability at a cyclical low point, it is likely that rents will continue to increase throughout Central London.”
Eleven units over 50,000 sq ft were under offer in Central London at the end of May, the biggest of which was 374,000 sq ft to a banking and finance occupier at 10 Upper Bank Street.
Actual take-up in Central London in May was down 15% on April, but the total so far this year of 4.9m sq ft is ahead of trend. Availability has continued to fall in Central London, with unoccupied space dropping 10.2 million sq ft.