Western corridor subdued says report

Western Corridor office take-up was subdued in the first quarter of 2009, says the JLL report.

The report covers West London and the Thames Valley, and says that  around 290,000 sq ft was let, 53% below the five-year quarterly average. 

The report says take-up is being propped up by the healthcare sector, which accounted for 35% of the total. JLL single out the Hounslow Primary Care Trust's move into Sovereign Court, Hounslow as one of the major deals.

Vacancy rates in West London are about half those in the Thames Valley, at 8.7% overall, compared to 16%, with Grade A at 4.9%, compared to 7.9%. However they don't expect the vacancy rate to climb because of new supply over the next 12 months.

Named demand increased in the quarter to 2.3m sq ft, a rise of 17%, which is similar to that in Central London, but JLL cautioned “we do not expect rising demand to be a trend of 2009, however, and it is important to note that in comparison with recent years, this demand figure is low”.

At least they finished on a positive note: "The increase in inspections over the last months, in conjunction with the deals currently in solicitor’s hands, points to better take up figures for Q2 2009 but the continued economic uncertainty means that 2009 will be a tough year."

See the report here.

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