West End office demand has hit 4.3m sq ft and tenants looking to sign in Soho and Midtown face a shortage of supply, according to Strutt & Parker.
Of the 4.3m sq ft requirements in the first quarter, 2.5m sq ft has been identified as active demand, compared to 2m sq ft in Q1 2011.
Strutt & Parker’s “What’s hot & not report” also said 663,184 sq ft was signed for in the West End in the first quarter – higher than the corresponding quarters over the past three years. Take-up was also above the three-year quarterly average of 572,391 sq ft.
The bulk of occupiers that took space were from the telecoms, media and technology sector (43%). Companies that launched requirements for 50,000 sq ft or more, including Mind Candy and Incisive Media.
Areas noted as having significantly less office space or space under construction are Soho (just over 400,000 sq ft), and WC2 (around 600,000 sq ft).
In comparison, Victoria has some 1.2m sq ft that is, or will soon be, available.
A spokeswoman for Strutt & Parker said: “Supply is likely to remain constrained, especially in the core, with relatively few new completions planned next quarter, or indeed over the next 12 months.”
joanna.bourke@estatesgazette.com
