Much of the increase is due to Allen & Overy's decision to take 750,000 sf at Bishops Square in the City Fringe, but overall the first quarter saw take-up relatively stable at 2.2 million sf, compared to 2.3 million sf in the previous quarter. But the core City and West End both saw take-up increase over the quarter to 915,000 and 872,000 sf respectively.

However, with development activity continuing, albeit at a slower pace, total availability rose marginally to 14.82 million sf from 14.6 million sq ft at the end of 2001.

Insignia Richard Ellis calculates that prime rental levels in the City and West End markets remained static at £60 ($86) per sq ft and £75 ($108) per sf respectively, although rent-free periods have lengthened. IRE Director of Research Peter Damesick said: 'Compared to six or even three months ago, the economic outlook appears much brighter with the accumulating signs of recuperation in the USA. This has improved the prospects for a soft landing in the Central London office market.'