Take-up in the first quarter fell slightly below its Q4 2013 level, from 118,000 to 110,000 sq m. Despite the similar volumes of the last two quarters, the take-up in Q1 2014 shows clearer signals of resurfacing occupier demand.
Due in part to the relatively greater dispersion of take-up across a high number of operations, take-up is also more evenly spread across the different office areas than in previous quarters. The Outskirts received the highest portion of take-up, followed closely by the Rest of District with 31% and 30% of take-up respectively.
The last six months have witnessed a significant increase in take-up from the Banks, Investment and Insurance sector. The take-up in this sector over the past six months exceeds the take-up from the previous 24 months combined.
Office vacancy has dropped for the second consecutive quarter from 13.1% in Q4 2013 to 13% in Q1 2014. Strong take-up in both Q1 2014 and Q4 2013 have pushed down availability slightly, however as much of the take-up has been for relocations and expansions, a higher number of new market entrants are required in order to significantly impact the current vacancy figure in the coming quarters.
Rental declines have slowed significantly and are beginning to plateau in most areas. The largest year on year decline was in the Rest of City area, which fell 2% against Q1 2013.
Source : DTZ (Groupe UGL)