For example in Slough, take-up for 2001 amounted to just 263,220 sf, down from more than 540,000 sf during 2000--a fall of 51%. Rents peaked at £32 ($46) per sf in early 2001 but LSH expects the reduced demand will result in rents falling to below £30 ($43) per sf.

However once centre which appears to be bucking the trend is Hammersmith in west London. Easy access to central London and Heathrow is maintaining its popularity as an office location and LSH forecasts that the £40.00 ($58) per sf barrier could be broken there soon.

LSH Researcher Arezou Said said: 'In the Thames Valley the slowdown in demand has been compounded as newly developed speculative space undertaken in the last 12-18 months has come to the market, whilst some tenants have returned unwanted space to the market seeking to rationalise their requirements. The concern for the Thames Valley area is that confidence is unlikely to return to the sector in the short-term and thus demand throughout 2002 will remain at the low levels currently being experienced.'