Press releases

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.”

End

Notes to editors

About Deloitte Real Estate
Deloitte Real Estate redefines the concept of a full-service real estate business, offering a breadth of capability and an innovative approach unequalled in the market.

Our team combines traditional property services with financial and business advisory expertise to deliver integrated solutions on the most simple assignment to the most complex. We apply a depth of insight drawn from our understanding of all industries and sectors to advise occupiers, lenders, investors and the public sector on every aspect of real estate in an increasingly complex world.

About Deloitte
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

Sue Gibson
Deloitte LLP
+44 (0) 20 7303 3156
+44 (0) 78 5539 9368
sugibson@deloitte.co.uk

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