BNP Paribas Real Estate's Research Shows London’s City and Midtown Office Markets Benefit from Challenging Conditions in West End
Both the City and Midtown office markets in London have seen an increase in activity during the third quarter this year with both areas benefiting from the high rents and a lack of supply of Grade A office accommodation in the West End, according to BNP Paribas Real Estate.
London, United Kingdom, October 21, 2011 --(PR.com)-- Take-up for the City totalled 1.24 million sq ft during Q3 (up from 0.87 million sq ft in Q2) and prime rents in Midtown rose to £52.50 per sq ft, driven by traditional West End occupiers moving east taking advantage of better availability and lower rents. According to BNP Paribas Real Estate’s research prime rents in the West End remain at £100 per sq ft, almost double of those in Midtown. West End rents have increased by 18% over the past twelve months.
Dan Bayley, MD of Central London for BNP Paribas Real Estate said: “Due to scarcity of stock in Mayfair, Soho and St James’s we are seeing a number of companies, such as those in the TMT sector who would be considered as natural West End occupiers, relocating to the Midtown and City postcodes.
“This change in occupier profile means that the Q3 figures for the City are relatively healthy and slightly higher than might have been anticipated despite traditional City occupiers adopting a wait and see policy on expansion. This nervousness is a reflection of the fragile market confidence within the banking and financial sectors.”
Recent transactions at 200 Aldersgate (including Javelin Group) and the Expedia deal at the Angel Building are good examples of this trend, where natural West End occupiers are moving to locations that were previously considered the preserve of traditional City financial services occupiers.
Total take-up for Central London in Q3 stood at 2.5 million sq ft, an increase of 26.9% on Q2.
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Dan Bayley, MD of Central London for BNP Paribas Real Estate said: “Due to scarcity of stock in Mayfair, Soho and St James’s we are seeing a number of companies, such as those in the TMT sector who would be considered as natural West End occupiers, relocating to the Midtown and City postcodes.
“This change in occupier profile means that the Q3 figures for the City are relatively healthy and slightly higher than might have been anticipated despite traditional City occupiers adopting a wait and see policy on expansion. This nervousness is a reflection of the fragile market confidence within the banking and financial sectors.”
Recent transactions at 200 Aldersgate (including Javelin Group) and the Expedia deal at the Angel Building are good examples of this trend, where natural West End occupiers are moving to locations that were previously considered the preserve of traditional City financial services occupiers.
Total take-up for Central London in Q3 stood at 2.5 million sq ft, an increase of 26.9% on Q2.
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BNP Paribas Real Estate
Andrew Barber
+447989553903
www.realestate.bnpparibas.co.uk/
Andrew Barber
+447989553903
www.realestate.bnpparibas.co.uk/
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