Office vacancy rates in the West End of London were static as at the final quarter of 2012. This comes despite a 10% increase in availability in the fourth quarter of 2012. The cyclical high was 9.9% in the second quarter of 2009.
Paul Smith of the office agency team comments that the market saw a “subdued” end to 2012 as expectations of major pre-lets being concluded before year end were only partially met.
Take-up for the final three months was significantly down on the strong Q3 total, partly due to protracted deal negotiations.
‘’There remains a healthy demand for office space, particularly from technology and new media companies’’ Smith added.
Recently West End-related announcements included Facebook seeking 30,000 sq ft of overflow space and Freemantle Media seeking 50,000 sq ft of space.