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Central London office take-up highest since end of 2010

Take-up of Central London office space in Q2 2013 increased by 32% when compared with the previous quarter, according to the latest research by global property consultancy CBRE.

Three deals over 100,000 sq ft transacted over the course of the quarter:

* 205,800 sq ft to Amazon at Sixty London, EC1; * 138,300 sq ft to Bird & Bird at 12/14 New Fetter Lane, EC4; * 111,800 sq ft to Amlin Insurance at The Leadenall Building, EC3.

CBRE reported that there were a further eight deals over 50,000 sq ft, the highest number since Q4 2010.

Total take-up in Central London reached 3.4 million sq ft, taking the year-to-date total to 5.9 million sq ft, significantly higher than the 4.7 million sq ft seen at the same point last year.

Q2 2013 saw healthy levels of demand across a wide range of business sectors with similarly heightened levels of take-up from firms within the banking & finance (18%), business services (18%) and TMT sectors (19%).

Take-up in the City reached its highest level in almost three years at 1.6 million sq ft, comfortably above the 10-year average of 1.2 million sq ft.  West End take-up increased by 41% when compared with the previous quarter, but year-to-date remains slightly behind the equivalent point last year. Prime headline West End rents (representative of Mayfair & St James’s) increased to £97.50 per sq ft over the course of the quarter.

Under offers in Central London reached three million sq ft for the first time since Q2 2011.  Two units over 100,000 sq ft are currently under offer: 216,300 sq ft at Sea Containers House, SE1 and 140,300 sq ft at Cannon Place, EC4.  There are an additional eight buildings over 50,000 sq ft under offer across Central London.

Central London availability remained largely unchanged over the course of the quarter at 17.1 million sq ft.

Chris Vydra, Executive Director, City Agency, CBRE said: “The increases in take-up across Central London seen this year along with rising under offers have led some to call the turning point in the market.  Whether or not this is true remains to be seen, but the heightened levels of activity are supporting our forecasts of a steady improvement in the occupational market and a return to rental growth.”

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