Take up of space in Midtown rose an impressive 350% in Q1 2013 compared to Q4 2012, due to Google’s 800,000 sq ft letting at King’s Cross, according to new research by BNP Paribas Real Estate, the leading property adviser.
Positively, overall take up of London office space in the first quarter of the year was up 5% to 2.81m sq ft, compared to the five year average of 2.68m sq ft.
The research also revealed that Q1 2013 take up fell in the City, with a 28% drop as 1.02m sq ft of space was let. In the West End, take up of space remained stable with 0.75m sq ft secured, compared to 0.71m sq ft in Q4 2012.
The West End saw rents rise 5% to £105 per sq ft and Midtown also saw rents rise 5% to £55. Rents remained stable in all other submarkets.
BNP Paribas Real Estate’s executive director of City agency, Fred Hargreaves, said: “The overall London market remained stable in the first quarter of this year, as activity increased within the professional services and TMT sectors.”
“Interestingly, take up in Midtown rose 191% on the five year average of 0.34m sq ft, boosted by the recent announcement that Google is going to build its new HQ in King’s Cross. We also saw space become even more restricted in this submarket, pushing rents upwards. Looking ahead, the outlook for the City in Q2 2013 is looking encouraging,” added Hargreaves.
