Central London Net Stock Absorption Autumn 2008

Published: August 2008
Source/Company: Colliers CRE

Abstract:
Executive Summary
• Total net stock absorption (NSA) for Central London in the first half of 2008 was 1.6
million sq ft, a 28% increase on the second half of 2007.
• Despite this, overall occupancy in Central London fell marginally from 94.6% to 94.4%
due to the increase in availability.
• Prime rents have fallen, most notably in the City, as more development space completes
offering greater choice to occupiers.
• Central London NSA has benefited from pre-credit crunch pre-let activity as
developments complete part or fully let.
• North Oxford Street and the City Core were the strongest performing submarkets,
together contributing over 1 million sq ft of positive absorption to the half yearly total.
• Pre-let development space has once again helped to drive positive NSA, but this could
have less of an impact throughout the second half of 2008 as a glut of speculative space
comes to the market.