FPDSavills estimates there is 27.3 million sf of office space available, or 13.5% of stock. With development completions much lower compared to last year, availability is expected to peak at around 28 million s.
Take-up for the whole of 2003 is forecast to be 2.6 million sf, 26% lower than 2002 and 56% lower than the ten-year annual average of 5.9 million sf. As a result FPDSavills forecasts that average prime rents in the western sector will fall to around £26 ($42) per sf by the end of 2003, representing a fall of around 8% over the year.
Steven Lang, senior research analyst at FPDSavills said: "Since the beginning of the year, we have found that availability has slowed which has stopped rents going into free fall. It is still very much a tenants' market but as demand returns we do not expect landlords to be quite so generous."
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