Whilst take-up for Q3 2016 is 2% down on the five year quarterly average of 708,000 sq ft and 22% lower than the corresponding quarter in 2015 (884,000 sq ft), Strutt & Parker highlights that take-up for the year so far in the region totals 2.24m sq ft – representing an increase of 6% on the same period last year.

Strutt & Parker’s research also found that occupiers continue to seek high quality accommodation and cite that 86% of all transactions that have been completed so far in 2016 were on new Grade A New or Grade A space.

According to Strutt & Parker prime rents are holding firm in most south east locations as occupiers accept that the best space has a premium attached to it. Q3 2016 saw a new record rent achieved for Reading’s out of town market at Winnersh Triangle where Becton Dickinson acquired 44,000 sq ft at a rent equating to £33 per sq ft. Watford is also cited as having reached a new headline rent of £30 per sq ft at The Junction.

Ed Smith, head of national markets office agency at Strutt & Parker, said: “Despite a lack of large transactions, take-up levels have remained the same, and in fact the number of deals taking place across the region has actually increased. 58 transactions were completed in Q3 2016, representing an increase of 33% on the five year average.”

Demand across the south east markets remains strong and, according to Strutt & Parker, identified demand levels for the region total 4.8m sq ft, 2% up on Q2 2016 with approximately 585,000 sq ft of space currently under offer.

Ed Smith concluded: “Demand for good quality space across the south east continues unabated, and the new stock delivered in this development cycle has driven substantial rental growth for the region. With a number of speculative completions scheduled for Q4 this year and the first half of 2017 those occupiers in the market now have a good level of choice in a number of centres.