Take-up in the top six office markets was in line with expectations in 2013, registering a decline of approx. 10% or some 300,000 sq m compared with the previous year.
Despite the fall in take-up, the average vacancy rate across the markets under review decreased by one percentage point year-on-year to 8%.
However, the distribution of vacancies is quite uneven with an oversupply of grade B and C offices in peripheral areas and a shortage of high-quality space in central locations.
Companies with requirements for large contiguous space in good locations are faced with a particularly acute shortage of options. Indeed, lettings of such space are now almost only possible in new developments and these remain scarce.
Source : Savills