Office deals increase in Western Corridor

Posted on by John Cronin

A new research report indicates that office lettings in West London and the Thames Valley are up nearly 50% year on year.

In new research published by commercial agents Jones Lang Lasalle, lease data indicates that office lettings for the first 3 months of 2011 are broadly in line with the final quarter of 2010 but up 48% compared with the 1st quarter of 2010. The research report covers an area known as the Western Corridor which includes the sub markets of West London and the Thames Valley.

markethouse officesLettings of approximately 393,000 sq ft of office space were secured during the 1st quarter of 2011, including a number of significant deals.

Software giant Adobe Systems signed for 49,500 sq ft of floor space at the Grade A, 75,000 sq ft Market House office scheme in Maidenhead (pictured) and BP took 36,400 sq ft of floor space at 5 The Square, Stockley Park.

Jones Lang Lasalle forecast that just over 2million sq ft of office space within the region will be let in 2011, broadly similar to letting volumes achieved in 2010. The reports notes that lettings between town centres and out-of-town locations have been evenly spread in 2011. James Finnis, head of Jones Lang LaSalle national offices team says: “Occupiers continued to favour Grade A space, with many taking advantage of the opportunity to upgrade.  Grade A take-up accounted for over 245,000 sq ft – nearly two thirds compared with an average of nearer half.”

Driven by demand for offices in Windsor and Chiswick, rental prices during the quarter increased by 0.8% across the Western Corridor market. Jones Lang LaSalle expects an annual rental price growth of 3.6%, giving an average prime rent for the region of around £28.40 by the end of 2011.

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