■ Headline rents have held in the West End while we have seen only a slight decline in the City. Both markets have witnessed an increase in the level of incentives being granted to tenants.
■ Boosted by an influx of foreign capital, investment volumes in both the City and West End are significantly above the long term average with high levels of demand, particularly for large 'trophy' assets.
■ Looking ahead, the fundamentals of the central London office market remain strong. In both the City and West End the amount of supply under offer and active market requirements are above average which suggests a strong H2 can be expected. Similarly, recent high levels of pre-letting in both markets have resulted in speculative development completions being kept to a moderate level, resulting in only a gentle increase of vacancy rates being expected over the short-medium term.
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