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March 22, 2010
Demand For Office Space In Central London Remains Strong
According to CBRE’s latest data, tenant demand in Central London has remained strong in February. Furthermore, for the third month in a row, take-up has been above the 1m sq ft mark, suggesting that the first quarter of 2010 will be strong.
Digby Flower, head of Central London Agency at CBRE, said: “In Central London, landlords have already reacted to the increasingly competitive market with rents increasing over the last few months. With no sign of tenant demand abating in the short term at least, falling supply will continue to drive rental growth over the remainder of the year.”
However, availability in Central London continued to be a major problem during the last month. In contrast to June 2009, where supply peaked at 21.3m sq ft, the end of last month saw supply falling to 17.7m sq ft.
The company said that there were only three deals over 100,000 sq ft completed during February in Central London, the largest of which was the 270,600 sq ft signing by BlackRock Investment Management at Drapers Gardens.
Australia’s Macquarie Bank leased 212,400 sq ft at Ropemaker and the LOCOG took an additional 135,500 sq ft at 10 Upper Bank Street, Canary Wharf.
In the West End, the largest deal was by Marks & Spencer, which signed 23,700 sq ft at 10 Eastbourne Terrace in Paddington.