London’s Square Mile has experienced the lowest take-up rate of new office space since the last recession.
However, total vacancy rates for London are still around 12%, a little over half the rate of the early 90s downturn, which may be some consolation to commercial property estate agents.
In estimates for the first quarter of 2009, 220,000 square feet of office space was occupied by new tenants.
This is less than half the take-up at the lowest point of the 1990s recession. 500,000 square feet of new commercial property was let in Q3 of 1991.
Rental fees in London have also dropped around a third since the top of the boom in 2007, with landlords taking the hit as businesses negotiate lower costs in an attempt to survive.
One of the main causes of the slowdown of take-up in new office space is the contraction of the struggling financial services industry.