Office take-up in the capital plummeted by more than 50% the final quarter of 2011.
In the West End, Midtown, City and Docklands, 1.8m sq ft of offices were let in Q4 – a 57% fall on the 4.18m sq ft transacted in Q4 2010.
The Q4 2011 figure, calculated by BNP Paribas Real Estate, was also 750,000 sq ft lower than take-up in the previous quarter.
Dan Bayley, central London managing director at BNP PRE, said the fall could be attributed to a shortage of grade-A office space, “causing some occupiers to migrate away to areas that they might not have previously considered”.
However, owing to the shortage of prime space, rents have either remained static or increased.
Average Q4 rents climbed to £100 per sq ft from £90 per sq ft in the same period in 2010. During the same period, City rents rose minimally to £54.50 per sq ft.
Key deals last month included Savills announcing it will take five floors – around 64,000 sq ft – at 33 Margaret Street, W1, in early 2013.
joanna.bourke@estatesgazette.com
