The first rise is two years did little to change the fact that availability was still below trend at the end of Q3 however.
Following two years of decline, the figure was still 29% under the 10-year average of 14.7m sq. ft.
CBRE said the recent rise in availability is partly due to a dip in take-up which fell 11% while remaining above the 10-year average, but it is more down to the 42% rise in marketed availability as many un-let properties moved within 12 months of completion.
Developments headed for completion in 2015 are expected to reach 3.6m sq. ft. and forecasters predict this figure will rise to 6.6m sq. ft. in 2016, marking a return to pre-crisis levels, CBRE said.
“Availability in Central London crept upwards in the third quarter after a small dip in take-up, given the hefty rise in City developments nearing completion,” said Emma Crawford, head of central London Leasing at the consultancy. “I find it extremely promising that by next year, completions will be well over 6m square feet, the highest levels we’ve seen since 2009.”
“The availability of newly completed and second-hand space fell over Q3, reflected in a drop in the vacancy rate from 2.8% to 2.7%. Meanwhile, developments under offer remained above the 10-year average, despite falling 4% in the quarter,” Crawford continued. “For the first time in two years, the highest proportion of these properties, 32%, were in the West End.”
