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London Office Vacancies Begin to Rise

LONDON-In another sign that the economic downturn is affecting the property market, new research from CB Hillier Parker shows that central London office availability rose by 16% in three months.

By Graham Parker | Updated on July 18, 2001

LONDON-Availability in the central London office market turned up sharply during the second quarter of 2001, according to new research from CB Hillier Parker. From Paddington in the West to Docklands in the east, the total stock of available offices rose 16% in the quarter to 6.9 million sf.

The overall availability rate in central London rose from 2.7% to 3.2%, with 3.9% in the West End, 2.8% in the City and 2.2% in Docklands. But in all sub-markets vacancies are still at historically low levels. CBHP’s Central London Market Index also shows that 90% of available space is now second-hand, a reflection of company rationalisation and portfolio consolidation in the face of the global slowdown.

Take-up across Central London fell by 11% during the second quarter to stand at 3.9 million sf. Although this figure is 26% down on the equivalent quarter last year, it is still a third higher than in the same period of 1999. Take-up of new space fell by 24%, but take-up of second-hand space actually rose by 11%, reflecting increased availability and a new cost consciousness among tenants.

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