London's City and Midtown office markets have recorded a rise in activity during the third quarter, new research has found. A study carried out by BNP Paribas Real Estate revealed that there is a lack of grade A office space in the West End, which is driving tenants to other areas of the capital and has, in turn, resulted in rising rents in these newly-popular areas. However, the organisation noted that the cost of space in Midtown still remains almost half of that charged for offices in the West End.
Meanwhile, the survey showed that take-up of office space in central London as a whole increased by 26.9 per cent during the third quarter, compared to the previous three months. Investment volumes, on the other hand, dropped during the same period, with a notable fall recorded in office markets. Shaun Gorvin, city investment senior director at the company, commented: "Investors have been more circumspect in the third quarter, reviewing their purchases already in solicitors' hands and postponing new purchases until financial markets hopefully settle."
Earlier this week, figures released by Colliers International showed that, despite the take-up of office space in central London falling during the three months from July to September, the rate of pre-lets was at its highest level for a year.
- Friday 21 October 2011