Availability of grade B office space in the capital hit its lowest level since 2001 in September, according to DTZ’s latest London office market update.
Some 5.1m sq ft of secondary office space is available in the capital, a drop of 74% over the last decade.
Sophy Moffat, central London research, DTZ said: “Most people focus on prime space but availability of grade B is also important to London’s increasingly diverse economy.
“Tech, creative, media and start-ups make up a large share of central London’s industries, but the cheaper, and typically older, office buildings these kinds of firms often flock to such as converted warehouses in Shoreditch seem to be in short supply.”
Across London’s office market, take-up has hit 10.4m sq ft year-to-date, 15% up on the same period last year.
Docklands saw the largest increase in takeup, with 860,000 sq ft transacted year-to-date compared with 460,000 sq ft this time last year.
The City also saw an increase in transactions, up 26% at 4.8m sq ft.
Total office space under offer in September stood at 3.2m sq ft, 19% above the five year average.
The Shard remains the largest office space available in London, with 375,000 sq ft for rent.
