M25 office take-up 'slow but resilient'

The take-up of office space in the M25 region is slow, but rents remain resilient, according to Savills.

Its six month Greater M25 Office Survey predicts that take-up will be muted this year and supply will recede, but adds that rents have continued to rise and predict they will remain healthy.

The report shows that average headline rents rose by seven per cent in the western sector and 3.7 per cent in the southern sector, while the northern sector sae a 2.6 fall in top rents achieved.

Last year the western sector, which includes towns such as Maidenhead and Reading, continued to dominate the market with a 54 per cent share of the total take-up in 2007, which rose to 63 per cent in the first half of 2008.

Jeremy Bates, head of Savills national office agency, comments: "There are significant corporates that are looking beyond the current uncertainty and we are seeing a good number of deals in this market along with a healthy level of live requirements, which currently stands at 5.4 million square feet."

Savills expects development completions over the next year to be high, showing the highest level of completions since 2002.

This week the Association of Foreign investors in Real Estate said that London's commercial property market is one of the most attractive for investors.

Martin Slowe Property Services are Commercial Property Consultants offering a full range of Commercial Property Services.