Tenants took up 2.4 million square feet in office space during the
first three months of 2015, according to commercial estate agent Cushman &
The biggest growth in demand was seen in the City, as
professional-services firm Deloitte struck the biggest deal, agreeing a major,
270,000 square feet, pre-let at 1 New Street Square. That deal pushed City
lettings 34% ahead of the same time last year.
— itself put up for sale with a $2 billion (£1.35 billion) price tag by the
billionaire Agnelli family — saw quieter letting activity in the West End as an
acute shortage of space pushes vacancy rates down to just 2.3% — a level not
seen since 2000.
shortage has seen the private family office of the Nahmads — billionaire art
dealers originating from Syria — bust the UK record for the highest London
office rent ever paid — a reported £185 a square foot for the top floor of
Green Property’s 8 St James’s Square development.
Tyler, C&W’s head of West End office agency, said: “It is clear that rising
rents and scarcity of product are leading to a redistribution of occupiers
across central London, particularly West End occupiers.” London Evening Standard,1st April 2015