Member Article

London office take up falls 11%

Office take up in the capital has fallen 11% in the last 12 months, despite a 10% rise in the last quarter of 2012.

In London’s financial quarter however, take up rose by a significant 45% in quarter four, whereas this figure fell in every other submarket.

The technology, media and telecoms sector fared much better that other industries, as it occupied 26% of the market in the last year, in comparison to 23% in 2011.

Insurance firms took a slightly larger share of the market in comparison with 2011, and occupied 10% of office space, up from 8%.

Dan Bayley, London’s managing director of real estate firm BNP Parabis, commented: “Although there were some major deals in the last quarter across Central London, the City witnessed the most significant activity, with a number of large lettings to the insurance sector.

“Looking ahead, we expect 2013 to be another challenging year, with transactions led mainly by lease events such as regears.

“There is unlikely to be as much activity this year from the insurance sector, but expect legal sector demand to recover.

“In addition, continued growth in the tech and media sectors will drive rents and take up in emerging locations such as Clerkenwell, Shoreditch and the Southbank.”

This was posted in Bdaily's Members' News section by Miranda Dobson .