Central London take-up on the rise: CBRE

Central London office take-up rose to 250,000 m² in the third quarter of 2011 - the strongest performance of the year to date, according to the latest data from CBRE.

Almost all Central London markets recorded increases in take-up from the previous quarter, with the largest increase seen in the City, strengthening to 84,000 m² from 70,000 m² in Q2. The exception was the West End, which fell below 93,000 m² 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 300,000 m² and has been below this average for the last three quarters reflecting depressed demand from the banking and finance sector. The sector's share of total take-up was 18% in Q3 and 22% for the first three quarters, which compares with an average of 29% over the last 10 years and 41% last year.

'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,' said Adam Hetherington, managing director, Central London. 'However,' he added, '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.'