The Market for Commercial Property in London Remains Strong
A real estate company has revealed that latest figures show the market for commercial property in London is still going strong.
The leasing sector for commercial property in London enjoyed a strong third quarter, according to property consultant and real estate broker Cushman & Wakefield.
The firm claim that more than two million square feet of commercial space was leased in the West End, Docklands and the City, representing a fifty four per cent rise compared to the last quarter’s figures.
The capital’s market for commercial property in London has remained strong despite the current weak economic climate and quiet growth in other property sectors.
A little more than two million square feet of office space has been let in the West End so far this year, with Camden PCT at King’s Cross and Regent’s Palace’s Debenhams recognised most notably. These leases combined amounted to about 150,000 square feet of the total space let to businesses.
The demand in West End office space was highest among technology, media and telecommunication industries. The supply of commercial property in London’s West End however, fell from the first few months of 2011 and the current rate of vacancy stands at 4.6 per cent.
More recently, close to 200,000 square feet of new office space was made available across more than four buildings.
City and Docklands saw a seventy five per cent take-up from the previous quarter, whilst more than 50,000 square feet of office space was let and another four million square feet is currently under construction.
The firm’s research also showed that rents in prime areas have remained stable, with just a three per cent growth last month. This has made commercial property in London’s sought-after-areas quite affordable. This promises good things for the future of the London office space market.