Central London Office Briefing Research Report Quarter 4 2011- GVA

Report Summary:

West End occupier market

• Q4 was the busiest quarter of the year. 788,619 sq ft was let, 9.0% above the five-year quarterly average. Take up for 2011 totalled 2.9 million sq ft, 9.5% down on annual take up for 2010.

• The largest deal of the quarter was Camden Council taking 127,000 sq ft on a long leasehold at 3 Pancras Square (NW1), part of Argent’s King’s Cross Central. Elsewhere, Savills took a pre-let of 66,000 sq ft at Great Portland Estates’ Cavendish Gate (W1).

City occupier market

• Take up for Q4 totalled 848,613 sq ft, down 29.7% on the five-year quarterly average and 27.5% down on the previous quarter. This means that take up for 2011 totalled just 3.8 million sq ft, 38% down on the annual figure for 2010 and 9% down on take up for 2009.

• The largest deal of Q4 was Aon taking a pre-let on 192,000 sq ft across ten floors at British Land’s Leadenhall Building (EC3) at an average rent of £52.50 per sq ft. Aon has an option on a further 85,000 sq ft, with the scheme due to complete in 2014.

Docklands occupier market

• Take up for the final quarter of the year totalled 81,875 sq ft, 75% down on the five year quarterly average. In what was a very quiet year across Docklands, take up totalled only 464,157 sq ft, 78% down on 2010.

• The largest deal of the quarter was BBVA taking 29,000 sq ft at One Canada Square (E14). At 40 Bank Street (E14) G4S took 19,000 sq ft.

Central London investment market

• Investment transactions in central London for Q4 2011 totalled £1.8 billion, 4% up on the £1.7 billion in Q3 2011. Total investment transactions for 2011 totalled £7.2 billion across central London, 20% down on 2010.

During the final quarter the majority of activity was from overseas investors who accounted for 77% of all transactions by value across central London. In the City, this figure was even higher at 86% and in contrast to the previous quarter where the majority of activity was from UK property companies and funds

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