Second strongest take-up in City ever: CBRE

Take-up of office space in the City of London in the first quarter was the highest on record since 2000, according to research from CB Richard Ellis (CBRE).

First-quarter leasing transactions for 2010 stand at 1.89 million m2, slightly above the Q4 2007 total and the second highest recorded total since data compilations began in 1984. The highest on record was Q4 2000.

Head of London Research at CBRE, Kevin McCauley said: 'Tenant demand has remained very strong in the City with the absorption of new space significantly reducing availability. As the supply/demand imbalance has intensified landlords have reacted by increasing rents over the last few months and with no sign of this changing in the short term.

'With development completions limited over the next two years, falling supply will continue to drive rental growth over the remainder of the year.'