560,000 sq ft of newly developed office space was completed in 2011.

948,000 sq ft is scheduled for completion in 2012 and a further 1.2 million sq ft in 2013. Of this space 93% remains available to let.

In 2011 development schemes totalling 2.1 million sq ft started on site. However, development starts slowed in the second half of the year when only 570,000 sq ft of this total was commenced.

This quarter the vacancy rate has increased to 6.0% up from 5.4% in Q3.

Average rents for typical Grade A space in the West End have not changed since September and remain at £72.50 per sq ft, rising to £100.00 per sq ft for new build Grade A space in prime locations.

In the last 12 months headline rental values have increased by 7.4% from £67.50 per sq ft in December 2010.

Transaction activity in Q3 amounted to £589 million. The first estimate of transaction activity in Q4 indicates that West End office investment decreased to £314 million. But as usual this figure is likely to be revised subsequently. Twelve months earlier in Q4 2010 investment amounted to £619 million.

The yield on prime West End offices saw no change over the course of Q4 and remained at 4.5% for the eighth consecutive quarter.