End of year central London office statistics has been saved
End of year central London office statistics
Central London office rents to rise as availability falls
12 January 2015
The amount of office space available to rent in central London has fallen by 14 per cent over the last 12 months and 48% since the peak (2009). The latest end of year research figures by Deloitte Real Estate shows Central London now has the lowest level of office availability since 2009.
Chris Lewis, head of tenant representation at Deloitte Real Estate, says: “All of the core Central London markets have seen a decline in available space in 2014. In fact the West End’s vacancy rate is now critically low at just below four per cent.”
Of the submarkets across the West End, Victoria has seen the greatest decline in available office space, falling 46% in just 12 months.
However, the City of London market has not seen as dramatic a decline in available space, hovering around five million sq ft throughout 2014, but still remains at its lowest level for seven years. This is despite over 3 million sq ft completing construction during 2014 – a new high.
Lewis continues: “We expect strong occupational demand to remain during 2015 with a limited development pipeline. We anticipate 6.3% rental growth in the City and 8.7% in the West End over the next 12 months on prime Grade A buildings. In some areas where we are seeing very low levels of available space, we could see pockets of super-growth.”
Notes to editors
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The information contained in this press release is correct at the time of going to press.
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