ニュース
Central London office rents increase in second quarter despite lower take up
26-07-2012
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‘Rising Central London rents and lower take up levels suggest that a shortage of available good quality stock rather than surging demand is boosting rents. However, the steep increase in properties under offer indicates a potential pick up in demand is underway which will be reflected in further greater take up towards the end of the year and moderate rental increases,’ said Charlie Killen, head of commercial at EA Shaw.
However he added that how the euro crisis plays out could have a considerable impact on this prediction.
Availability in Midtown dropped back during the second quarter by 4% as the overall vacancy rate fell to 5.6% from 5.8% at the end of the first quarter. Headline rents for the best space in Holborn increased to £50 per square foot from £47.50 per square foot in the first quarter and in Covent Garden rents increased to £63.50 per square foot from £62.50 per square foot in the first quarter.
In Soho availability decreased substantially in the second quarter by 18% to 398,000 square feet, down from 488,000 square feet in the first quarter with 83% being new or newly refurbished. Take up decreased by 44% to 43,000 square feet, down from 77,000 square feet in the previous quarter. The amount of space placed under offer increased to 115,000 square feet at the end of the quarter up from 42,000 square feet at the end of the first quarter.
Rents for the best space have continued to increase and in the second quarter rose by £5.50 to £65 per square foot, driven mainly by demand from corporate TMTs.
Availability in Holborn and City Fringe during the second quarter decreased by 10% to 1.46 million square feet, down from 1.62 million square feet in the previous quarter. Rents increased to £42.50 per square foot in EC1, that is Clerkenwell and Farringdon, up from £39.50 per square foot in the first quarter as occupiers seek trendier less institutional accommodation which the locality is able to offer, but remained static at £47.50 per square foot in EC4, that is Fleet Street and City Fringe.
Take up decreased by 16% to 242,000 square feet, down from 289,000 square feet in the first quarter, however there was 453,000 square feet under offer at the end of the quarter up from 248,000 square feet at the end of the first quarter.
In the South Bank take up decreased by 8% to 228,000 square feet, down from 248,000 square feet in the first quarter, a healthy level considering the long run quarterly average is around 250,000 square feet.
Availability decreased by 11% in the second quarter to 1.02 million square feet, a drop from 1.14 million in the first three months of the year. The decrease in availability has lowered vacancy rates to 6.8% from 7.6% in the first quarter.
So far, no lettings have been achieved at The Shard and consequently over half the space currently available on the Southbank remains in this one building. Excluding The Shard, the Southbank vacancy rate is 2.9%.
The report also shows that headline rents for Grade A office space increased to £41.00 per square foot from £38.50 per square foot in the first quarter as a result of a lack of supply, while rents for top quality trophy buildings remained at £47.00 per square foot, the same as in the previous quarter.
