City office lets reach three-year high but value still tops wish list

 
Kasmira Jefford
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LETTINGS of prime “grade A” office space in the City hit their highest level in three and a half years in the third quarter at 470,640 square feet.

Research out today by Colliers International showed that most deals were for second-hand offices as cautious companies continue to put value at the top of their lists.

The property consultancy said total take up in the City was just over 1.4m square feet, driven by 200,000 sq ft let at Hines’ Cannon Place, The Walbrook and Gerald Ronson’s Heron Tower.

Colliers’ City office head Mark McAlister, said, “Occupancy within the high profile schemes is now close to 60 per cent, although incentive packages remain above the market average. We expect rent-free periods to be gradually reined in over the next six months.”

Total central London take-up also reached its is highest level since the start of the crisis. The year-to-date total (9.7m sq ft) is only one per cent below the annual total for 2012.