The South East office market witnessed a 6% increase in take up from last year.

According to the latest research by Strutt & Parker the South East office market witnessed a 6% increase in take up from last year with space transacted in the region totalling 4.38m sq ft. 

Strutt & Parker's National offices and business parks survey identifies the key occupational and investment trends in the Thames Valley, M25 and Greater London markets.

The research found that demand in the South East reached 5.17m sq ft by the end of 2011 up by 20% compared to 2010 and 35% compared to 2009.  Demand in the region continues to be dominated by requirements of between 5,000 sq ft and 20,000 sq ft, however the 40,000 sq ft to 60,000 sq ft size bracket has witnessed increased popularity over 2011 with demand for this type of space rising from 7% in 2010 to 14%.

Strutt & Parker's research identified FBS, electronic and pharmaceutical occupiers as the most active sectors in the South East market in 2011 accounting for 66% of take up.  They also found that the energy sector had increased its influence and was responsible for 9% of total floorspace with major lettings to Centrica, BP and Saipem.

A number of towns in the region are experiencing historic levels of low supply with some areas currently having no new buildings at all.  According to Strutt & Parker vacancy rates across the region now average 13% with vacancy rates for Grade A new space dropping to 2.9% which has prompted a large scale return to speculative development.

Download the National Office & Business Park Survey Winter 2011/12