November Take Up Points to New Market Momentum
London, 8 December 2009 — Latest research from CB Richard Ellis shows that the amount of space under offer in central London continues to rise, reaching 3.4 million sq ft at the end of November, a 21% rise on October and more than double that recorded at the start of the year.
In the City and Docklands markets there is currently 1.6 m sq ft and 0.5 m sq ft under offer (respectively) and just over 900,000 in the West End.
Availability in Central London fell at the end of November to 19.8 million sq ft, a 4% decrease on October, and a result of the sustained level of take up in recent month.
Digby Flower, Head of Central London Agency for CBRE said: “It is increasingly clear that the momentum in the market has changed and we are now moving forward. As supply is absorbed we will soon be faced with a shortage of new quality stock, particularly in the City and this will inevitably produce strong rental growth.”
Take-up in central London in November was 800,500 sq ft, down on the previous month, but pushed the six month rolling average to an increase of 8% from October. Both the City and West End have seen modest falls in supply, now at 8.1 million sq ft and 7.4 million sq ft respectively.
Recent leasing deals such as Bank of China at 1 Lothbury St, EC2 (112,300 sq ft) and Lehman Brothers at 25 Canada Square (73,400) were the most significant in the City and Docklands. Heirdrick and Struggles International took 27,500 sq ft at the Iona building, 40 Argyll Street in Soho.
The highest rent in the City this year has been achieved at IVG’s Gherkin building at 30 St Mary Axe, EC3. Financial investor Sutherland Group has taken 3,000 sq ft from SuperDerivatives, paying £59.50 per sq ft on a five-year lease. CBRE jointly advised IVG.