The exception was the West End, which fell below 1m sq ft for the first time since Q3 2009 due to a large drop in newly completed space.
In spite of the better Q3 performance, take-up remained below the 10-year average of 2.9m sq ft and has been below this average for the last three quarters. The lack of demand from the banking and finance sector has been the primary explanation of this; the sector’s share of total take-up was 18 per cent in Q3 and 22 per cent for the first three quarters, which compares with an average of 29 per cent over the last 10 years and 41 per cent last year.
Adam Hetherington, Managing Director, Central London, said:
“While take-up has been generally weak throughout the year, the jump in leasing levels across almost all central London markets over the third quarter has been a positive sign. However, it’s clear that the London office market has not escaped the deterioration in economic conditions and the lack of confidence amongst businesses has meant that occupiers are more cautious about making real estate decisions.”
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