Commercial property consultant Cushman & Wakefield found that property transactions worth GBP 2.19 billion were conducted in the first three months of 2011, compared to transactions worth GBP 1.63 billion in the first quarter of last year.
The report did note however that the number of transactions in the first quarter of 2011 was actually lower than the GBP 2.92 billion conducted in the last quarter of 2010.
Clive Bull, head of central London investment at Cushman & Wakefield said: “Central London commercial property remains a mature, transparent and liquid market.
“Demand remains strong from both domestic and overseas investors as London continues to be perceived as a relatively safe haven for investment, especially in recent events around the world. With sterling still weak and an increase in stock likely with banks off-loading assets, we are confident that 2011 will see volumes rise.”
The commercial property consultant also reported that office space leasing has risen in the US as the economy slowly regains its health.
According to research from the consultant office space leasing reached a six-year during the first quarter of this year.
“Asking rental rates are bottoming out in most markets, and concessions are becoming less generous,” said Maria Sicola, executive managing director and head of Americas research at Cushman & Wakefield.
“With demand rising and availabilities shrinking for quality space, CBDs have begun their shift from tenant to landlord-favoured markets.”
Overall office absorption rose by 114.6 per cent in the first quarter of 2010 the research also showed.
Editor’s notes: According to JLL, in 2022, there was £12.2 billion of office space traded across Central London.
This was below the £13.3 billion transacted in 2021 and 18% lower than the 10-year annual investment average of £14.8 billion.
The investment market was dominated by overseas investors who made up 79% of the total with Asia-Pacific investors making up 44% of the total.
The yield for prime City of London office space stood at 4.5% at the end of 2022, and between 4 and 4.25% for prime West End office space investments.
The US national office space vacancy rate in Q1 2023 was 20.2%.