M25 office take-up dipped 7% last year, but large requirements are set to dominate 2012.
Take-up across the major M25 centres reached 3.9m sq ft in 2011, compared to 4.2m sq ft the previous year, Colliers International has calculated.
Fourth-quarter take-up dropped 23% on Q3. However, deals in the Thames Valley during the same period remained static.
A slowdown in large requirements last year and more space coming onto the market led to vacancy levels rising to 17.3%.
But strong performances were recorded in areas including Chiswick and Reading, where headline rents increased.
Colliers said a number of confidential large-scale requirements are set to be activated in the current quarter.
Philip Papenfus, head of south-east offices at Colliers, said: “The market will continue to be driven by lease events and speculative development will only take place in the established office locations where existing supply constraints allow. There may be scope for less costly refurbishment opportunities, with the option of delivery into a more positive environment in 2013.”
He added: “We would hope to see 2012 herald more opportunistic transactions where competitive terms being offered by landlords reap rewards, but additional voids may come through merger and acquisition activities as cash-rich companies apply these resources.”
joanna.bourke@estatesgazette.com
