'Under Pressure,' the firm's M4 research document, says that new developments dominated the office letting market in 2000 and accounted for 58% of the 542,160 sf that was taken in 45 separate transactions.

Top rents for premises on leases over 10 years reached £31.50 ($44.10) per sf although Lambert Smith Hampton reported that this figure is expected to hit £35 ($49) per sf by the end of this year. Already Osram has taken 11,500 sf on the Langley business park while Interact has acquired 19,050 sq ft at 215 Bath Road for £32 ($44.80) per sf. There are currently few new offices onthe market although, including second hand and lower grade, some 345,000 sf are available.

However, fears are being expressed about the fall-out in parts of the hi-tech sector. Charles Rowton-Lee, of LSH's Slough office, says: 'The IT and telecoms sector has been most important to the Slough office market, although the recent downturn in the sector has had a serious knock-on effect at the start of this year. We have seen a fall in enquiries of 12% since thestart of the year.'