As of the second quarter of this year, the office space available on offer in Central London increased significantly from about 700,000 sqft to a little over one million sqft. Recording an increase of about 52%, the current availability saw a sharp decline owing to a number of important take-ups.
Despite low take-up, the rents in Central London continue to rise owing to increased demand for office space. In Midtown London, the office space availability dropped by about 4% while vacancy saw a decrease of 0.2% from 5.8%.
Despite the lower take-up in many parts of London, the rental values are increasing with office spaces in Holborn demanding £50 per sqft. The average rental value for office space in Covent Gardens is about £63.50 per sqft.
About 488,000 sqft of office space was previously available in Soho during the first quarter. This number has reduced to 398,000 sqft in the second quarter. Rental values for top quality office spaces are rising at an average of £5.50 - £65 per sqft in different parts of the city.
Office space availability decreased about 11% overall, with vacancy rates decreasing to 6.8% during the first quarter of 2012.
With the abundance of office space still available at the Shard, no significant lettings have been made since the launch of the towering skyscraper. At least 50% the available office space in Southbank is from the Shard, excluding which the vacancy rate is about 2.9%.
The headline rents for top grade office spaces in London increased from £38.50 per sqft to £41 per sqft owing to limited supply during the first quarter. The rents for trophy building office spaces remained constant during the same quarter at about £47 per sqft.