CBRE says corporate sentiment remains generally cautious and this is reflected in a continued absence of major pre-lets. However, there is increased interest and competition for the better quality buildings. Significantly, the amount of space under offer at the end of Q3 was 40% up on the end of Q2 at 2.6 million sf.

Once again, there were market differences between the City and West End markets. West End take-up saw a marginal 6% decrease in to 750,000 sf on the wuarter, whereas City take-up dropped by 18% to below 700,000 sf. Both markets have seen take-up of around 2.3 million sf over the year-to-date, coinsiderably below the long-term averages.

Availability has continued to rise to 26.3 million sf, up 5% on the second quarter. And again the City market shows less sign of improvement, with an 11% rise in availability contrasting with 4% in the West End. Accordingly, rents remain under downward pressure, with average rents for the West End and City each down by just under 5% over the third quarter. Prime headline rents in these markets now stand at £62.50 ($105) per sf in the West End and £45.00 ($75) in the City.