CENTRAL LONDON OFFICES NET STOCK ABSORPTION RESEARCH PAPER: SPRING 2008

Published: March 2008
Source/Company: Colliers CRE

Abstract:
 NSA was over 3 million sq ft for the third consecutive year, with 3.3 million sq ft of space absorbed in 2007.

 NSA in the second half of the year was driven by the City market which accounted for 40% of all space absorbed. The City Core continued to be the best performing submarket.

 Despite NSA remaining positive, the West End recorded its lowest annual total since 2005 as absorption softened significantly in the second half of 2007.

 NSA was 39% lower in the second half of the year as take-up fell and the reduction in availability slowed.

 Upwards pressure on rents has eased, particularly in the City, as the lack of 50,000 sq ft plus requirements begins to bite.

 2008 could see downwards pressure on absorption as development stock completes and comes to the market vacant, thanks to pre-lets stalling over the last quarter of 2007.