302,000 sq ft of newly developed office space was completed in 2011.

450,000 sq ft is scheduled for completion in 2012 and a further 110,000 sq ft in 2013. Of this space 97% remains available to let.

In 2011 development schemes totaling 740,000 sq ft started on site. However, development starts slowed in the second half of the year when only 260,000 sq.ft of this total was commenced.

This quarter the vacancy rate has decreased to 6.3% down from 6.6% in Q3.

Average rents for Grade A space in Midtown have not changed since March and remain at £50.00 per sq ft.

In the last 12 months headline rental values have increased by 5% from £47.50 per sq ft in December 2010.

Transaction activity in Q3 amounted to £269 million. The first estimate of transaction activity in Q4 indicates that Midtown office investment decreased to £75 million. But as usual this figure is likely to be revised subsequently. Twelve months earlier in Q4 2010 investment amounted to £76 million.

The yield on prime Midtown offices saw no change over the course of Q4 and remained at 5.50% for the seventh quarter in succession.