Take-up across the South East office market (defined as the Western Corridor and the north and south M25 markets) totalled 2.4m sq ft in 2014 according to Strutt & Parker. The research also found that 603,555 sq ft of space was transacted in the final quarter of 2014.

Ed Smith, head of national markets office agency at Strutt & Parker, said: “2014 witnessed a stabilisation of take-up with the total for the year falling just under the five year average of 2.8m sq ft.  The principle reason for the drop from 2013 was due to a significant reduction in the number of larger lettings with only seven transactions over 50,000 sq ft taking place compared to 14 in 2013. West London continued to see a healthy level of take-up with record rents being set in Hammersmith, Chiswick, Wimbledon, Richmond and Ealing. In the Thames Valley the £30 per sq ft barrier was broken in towns where new speculative development has been completed.”

Strutt & Parker’s research indicates that demand for South East offices is set to remain strong in 2014 and has identified 675,000 sq ft of space as being under offer and a further 5.39m sq ft of active demand.

Ed Smith concluded: “We expect to see economic growth continue in 2015 and, coupled with continuing speculative developments and refurbishments in key South East towns, this represents good news for the market.  Occupier demand continues to grow and 12.5% of identified demand is under offer across the South East.  Landlords with offices in strong locations with a good mix of car parking and public transport can expect continued demand and rental growth for the best product.”