INDUSTRY NEWS

London office take-up at lowest rate for six years

A recent report shows that take up of commercial property in London is at its lowest since 2003. Within the M25 area, take-up in Q1 of this year was down by 43% on the previous quarter.

A total of 377,000 square feet of new office space was leased. Vacancy rates in the same area dropped slightly from 7.4% to 7.3%, but are expected to rise by up to 1.5% as current tenancies come to an end and are not renewed.

The same paper suggested an upturn in investor interest after a particularly bad year in 2008, although this is not following through to a corresponding increase in purchases because of the continuing problems securing credit.

Where purchases have been made, investors are tending to look to the very long term for profits. With a few notable exceptions, the construction of new projects has likewise slowed.

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