Knight Frank reports rise in central London office space take-up
Property agents Knight Frank have released figures to show that take-up for office space in central London has increased in Q3 2009. This is in line with news from Cushman and Wakefield which we reported on yesterday, which also shows an increase in take-up for office space in areas of the capital.
Knight Frank’s key findings show an overall increase of 80% for take-up in the City in Q3, when compared with Q2 – the largest recorded quarterly take-up for two years in the City. Despite the surge in take-up availability still rose by 4.5%, but positively, Knight Frank expect that the peak for availability of office space in the City will be reached in the next three to six months.
In the West End, Knight Frank recorded a rise in take-up of almost 50%, the highest quarterly take-up figure for twelve months. Prime West End office rents are expected to remain static until 2010, at which point forecasts show that rental values are expected to rise.
In line with reports by Cushman and Wakefield, prime rents in both the City and the West End are expected to rise in 2010, signalling that the end is in sight for the current ‘tenant’s market’. Bradley Baker, head of Central London tenant representation of Knight Frank, backs this up:
“It looks like the window of opportunity for a tenant to secure the very best deal is narrowing, although the market is still in their favour for now.”
Commenting on the overall performance of central London take-up, James Roberts, head of Central London research at Knight Frank said:
“These figures are certainly better than one would have expected back in the spring, and it looks like the market is now through the worst. We are not out of the woods yet, but given the encouraging economic news over the summer months, particularly in the financial markets, I think this is the start of a move back to normalized market conditions.”
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