Victoria’s lack of top-quality new development could protect it from the worst of the slump in the central London office market, according to the latest research from Cluttons.
Despite a dramatic fall in take-up over the last three months – with just 72,458 sq ft (6,732 sq m) let in the area since October 2001, compared with 195,990 sq ft (18,208 sq m) for the same period in the previous year – the amount of available space remained stable (click on the icon below to see details of Victoria office availability since 1989).
The total of 522,839 sq ft (48,573 sq m) available to let in October 2001 only increased by a net 2,960 sq ft (275 sq m) to 525,799 sq ft (48,848 sq m) in January 2002, while the overall vacancy rate remained at an historical low at 3%,.
Melanie Bayliff, Cluttons Central London research analyst, said: “It is somewhat ironic, however, that it is Victoria’s very lack of top-quality offices which ensured that rents never got out of control during the recent boom, that is also likely to protect Victoria from the downside being experienced in many other central London office markets.”
Prime rents in Victoria have fallen by 15% in the last 12 months, from the £57.50 per sq ft high achieved in January 2001 to just £49 per sq ft.
EGi News 19/02/02
