There were no completions of newly developed office space in 2011.

In Q4 2011 Derwent London started a redevelopment of 4-10 Pentonville Road, N1 which will provide 55,000 sq ft of office accommodation towards the end of 2012.

There is currently no other office space under construction in the City Fringe.

This quarter the vacancy rate has decreased to 6.5% down from 7.9% in Q4 2011.

Average rents for Grade A space in the City Fringe rose by 17% to £27.50 per sq ft from £23.50 per sq ft in Q4 2011. Rents in Clerkenwell and Farringdon are £35.00 per sq ft, with rents as high as £40.00 per sq ft being achieved for prime offices in the area.

There was no transaction activity in Q4 2011. The first estimate for Q1 indicates that City Fringe office investment increased to £14 million. Twelve months earlier in Q1 2011 investment activity amounted to £23 million.

The yield on prime City Fringe offices saw no change in Q1 and remained at 6.25% for the fifth consecutive quarter.