South east office year end 8th January 2015

Take up across the South East office market totalled 2.4m sq ft in 2014 according to a report by Strutt and Parker shows deals under the year average as a raft of deals in the final quarter boosted the market. The report has the key region - defined as the Western Corridor and the north and south M25 markets - saw 603,555 sq ft of space transacted in the final quarter of 2014. Ed Smith, head of national markets office agency at Strutt & Parker, said: 2014 witnessed a stabilisation of take-up with the total for the year falling just under the five year average of 2.8m sq ft. The principal reason for the drop from 2013 was due to a significant reduction in the number of larger lettings with only seven transactions over 50,000 sq ft taking place compared to 14 in 2013. West London continued to see a healthy level of take-up with record rents being set in Hammersmith, Chiswick, Wimbledon, Richmond and Ealing. In the Thames Valley the 30 per sq ft barrier was broken in towns where new speculative development has been completed. Smith concluded;We expect to see economic growth continue in 2015 and, coupled with continuing speculative developments and refurbishments in key South East towns, this represents good news for the market. Occupier demand continues to grow and 12.5% of identified demand is under offer across the South East. Landlords with offices in strong locations with a good mix of car parking and public transport can expect continued demand and rental growth for the best product.