Chesterton's London Officessurvey for the fourth quarter of 2002 revealed that take-up in 2002 fell tothe lowest annual recorded level for more than 17 years and it continues todecline. Demand fell across the Capital, with the greatest being in the Citywhere take-up slumped by a massive 80% against a peak at the end of 2000.Elsewhere in London, demand was down by more than a third on the same periodin 2001 and nearly two thirds down on a five-year average.
On the supplyside, completions accounted for virtually all the new office accommodationcoming to the market, the total volume of which grew by nearly 10% over thequarter.
Tony Burdett, Chesterton's Director of Research, said: "Theincrease in availability of top quality space reflects a surge in the levelof completions which are up by 15% on a five year average, and a vacancyrate of more than 9.0%, up from 6.6% during the same period in2001.
"The findings also bode poorly for rents which have continued to besqueezed down across the Capital, including a dramatic fall in Midtown ofnearly 28%, the largest decline there since 1992. Similarly, although yieldshad a difficult time, they managed to largely hold their own with slightfalls in the City and Docklands."
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