Supply has also risen by more than 40% to 10.5 million sf, with the vacancy rate now at 9.5% and rising, although the agent points out that vacancies are still substantially below those seen at the depths of the last market downturn. But is a measure of the problems facing the market that vacancies at Stockley Park, Heathrow--arguably Europe's premier business park--have reached 25% reflecting.

Mark England, Director of South-East Office Agency at ATIS Weatheralls, said: 'We expect activity to remain subdued during 2002, as both the economy and output within the TMT [technology media & telecoms] sector slows, particularly IT services. As a result, take-up is likely to remain stable or fall marginally during the year.'

And with new schemes still coming out of the ground, particularly around Heathrow and the M4, supply is likely to increase further. 'Where supply is greatest, rents are likely to fall,' warned England.