Office update 21st November 2012

Take-up in Midtown was 14% above the five-year quarterly average of 477,000 sq ft, according to Farebrother’s Midtown Office & Retail Market Report for the third quarter of the year.

The report found that 42% of take-up was in five transactions over 10,000 sq ft, including the 91,400 sq ft to King’s College at 22 Kingsway, WC2 - the largest letting in Midtown so far this year.

This recovery in take-up and limited delivery of new and refurbished space to the market lowered total availability by 5% and the availability rate to 5.3%, a rate that is expected to remain for at least until the end of the year, Farebrother said. Investment turnover was above the three-year quarterly average of £501m for the second quarter, at £813m.

In the largest transaction, Fleet Street Investments II (QIA) completed the purchase of Peterborough Court & Daniel House on Fleet Street, EC4, from the LPA Receiver for around £281m. It was one of the five overseas investor acquisitions, which accounted for 61% of total Midtown investment for the quarter.

This supports the notion that Midtown has been identified by some overseas investors as a key Central London market with a compelling Investment rationale.