London office news 13th June 2012

Central London office leasing activity picked up significantly in May as take up increased by 96% on the previous month to reach 811,000 sq ft, according to the latest research by CBRE.

The City saw the greatest volume of transactions with 371,600 sq ft acquired over the course of the month whilst Midtown saw the greatest monthly increase (231%). There were seven deals larger than 20,000 sq ft in May led by the Prudential Regulation Authority’s acquisition of 151,900 sq ft at 20 Moorgate.

The TMT sector remained particularly active, CBRE reports, with two of the three largest deals of the month coming from firms operating within that sector. Office availability in central London decreased marginally in May but is still high by recent standards standing at 16.94m sq ft.

Space under offer increased for the third month in a row to reach 2.37m sq ft. Dan Roberts, executive director, CBRE said: “The robust levels of take-up seen in May, coupled with a significant increase in under offers provide much cause for optimism in Central London. "Whilst take-up levels are still below their long-term average, we are starting to see an increased level of activity from occupiers that will be driven by upcoming lease events and existing active demand.”