Central London Take-Up Dips in Q1
The take-up of office space across Central London fell in the opening quarter of 2011 according to the commercial property firm Colliers International, with office space in the City and Dockland submarkets showing the most significant decreases.
Published in the Central London Offices Report for Q1 2011, Colliers reports a quarter-on-quarter decrease in take-up of 47% in Q1 11 across the City and Docklands ΓÇô a situation which was contrasted by the office market in the West End which experienced its highest quarterly uptake for over three years.
ΓÇ£The squeeze on Grade A supply is becoming more pronounced across Central London. However, total Grade A transactions for built space fell by 25% quarter on quarter, underlining the reduction in ready-to-occupy top quality office product.ΓÇ¥ explained Guy Grantham, Director of Research & Forecasting at Colliers International.
It is believed that the overall availability of high grade office space decreased by 4% in Q1 11 across Central London, a legacy of the stalled and cancelled office developments which became widespread during the financial downturn.
ΓÇ£This trend is likely to become more apparent as 2011 progresses.ΓÇ¥ continued Grantham, ΓÇ£Total development completions for the remainder of 2011 across all of Central London are expected to total 792,000 sq ft. This figure compares to a total of 2.9 million sq ft in the final three quarters of 2010, down by nearly two thirds.
The overall decrease in commercial office space take-up has also been reflected in the Serviced Office Space market in Central London, with the Serviced Office Review: Central London Q1 2011 report from officebroker.com reporting a quarter-on-quarter decrease of 4% in the number of new businesses entering serviced offices in Q1 2011.