Central London office take-up reached 3m sq ft in Q4 2011, up 12% on Q3’s total.
Bolstered by a strong West End market, it was the only quarter in 2011 to post take-up figures in excess of the 10-year quarterly average of 2.9m sq ft.
However, the 10m sq ft recorded for the whole of 2011 was a 32% fall on the 14.6m sq ft let in 2010.
The consolidation of operations to cut costs in the financial sector, as well as the shelving of expansion plans were some of the reasons for the fall in take-up.
As a result, lettings in the City in 2011 fell from 6.2m sq ft in 2010 to 3.7m sq ft in 2011.
However, West End take-up reached 4.3m sq ft last year – higher than the 10-year average for the area.
The West End also experienced a hike in prime headline rents. In Mayfair, prime rents increased 6% to £92.50.
Phillip Howells, executive director, West End business team, CBRE, said: “Creative industries occupiers have played a significant role in supporting West End leasing activity in non-core locations, such as the in north of Oxford Street East, throughout 2011 and over much of 2010. In 2012 we expect demand from the sector to remain strong, with active requirements still at a high level.”
However, the agent added that availability would remain tight this year.
joanna.bourke@estatesgazette.com
