Just over 7.2 million sq ft was let across Central London in 2012, marginally higher than in 2011. The City proved more robust than the West End and recorded a 22% improvement over the previous year, although both markets remained below the 10-year average take-up.

TMT still shoring up the market

The TMT sector accounted for 22% of total take-up in 2012 across Central London, the largest proportion of take-up to date and a trend which is expected to continue.

Supply continues to creep up

In the last quarter of 2012 supply levels marginally decreased in Central London, with the volume of construction starts exceeding completions. Overall vacancy rates remained stable at 4.1% in the West End, but in the City rose marginally in the final quarter to 7.5%.

The investment market is on the up ...

The Central London investment market had a strong finish to Q4, trading in excess of £4.1 billion; the second highest volume of investment transactions in quarter since Q2 2007. This took the total London office investment volume for 2012 to in excess of £15.4 billion - 43% higher than 2011.This is the third highest volume recorded and a record since the financial crisis.

... and overseas investment domination continues

Overseas equity continues to be the main driver behind volumes, accounting for 74% of the year to date total. This is forecast to continue in 2013.

Jones Lang LaSalle industry experts give their round up of the 2012 London market and trends going into 2013. View commentaries by clicking on the link below: