UK Property News 14th September 2011

Central London office leasing activity has bounced back in August with nearly 1m sq ft of take-up - a 72% increase on the same period last year. According to research from CB Richard Ellis, ten deals over 20,000 sq ft and a significant 250,300 sq ft pre-let at 25 Churchill Place in Canary Wharf to the European Medicines Agency have boosted the market. Digby Flower, head of central London agency, CB Richard Ellis, said: “August was a busy month for leasing deals and under-offers continue to remain healthy at 2.9m sq ft.” In the West End, take-up rose 22% on last year, to 278,100 sq ft. Key transactions in August include law firm, Trowers & Hamlin taking 95,500 sq ft at 3 Bunhill Row, EC1, business and technology consultancy, Detica signing up for 40,000 sq ft at 110 Southwark Street, SE1, and investment bank, Evercore Partners taking 34,700 sq ft at Stanhope Gate, W1. Overall supply in central London also increase by 2% in August, bringing the total to 14.1m sq ft. Overall availability rose to 6.4% from 6.3% the previous month. Yesterday CoStar News reported that there are around £4bn of large City offices coming to the market in the final months of the year, which could cause “indigestion at the top of the market”, according to City sources.