New research from BNP Paribas Real Estate has indicated the
total take-up of office space from new tenants in London increased
by 10 per cent in Q4 2012 compared with the previous quarter.

Although take-up in a number of London submarkets throughout the
final quarter of 2012 declined, the City continued to prosper,
where take-up rose by an impressive 45 per cent to 1.4m sq ft.

Encouragingly, the technology, media and telecommunications
(TMT) sector grew significantly in London
over the last 12 months, occupying 26 per cent of the office space
market compared to 23 per cent in 2011.

Service industries are clearly prospering with the insurance
sector also increasing its London market share from eight per cent
in 2011 to 10 per cent in 2012.

Dan Bayley, managing director of Central London at BNP Paribas
Real Estate, said: "Although there were some major deals in the
last quarter across Central London, the City witnessed the most
significant activity, with a number of large lettings to the
insurance sector.

"Looking ahead, we expect 2013 to be another challenging year,
with transactions led mainly by lease events such as regears.

"There is unlikely to be as much activity this year from the
insurance sector, but expect legal sector demand to recover. In
addition, continued growth in the tech and media sectors will drive
rents and take up in emerging locations such as Clerkenwell,
Shoreditch and Southbank."

Real estate consultants, Cushman & Wakefield suggest the
high levels of lease expiries in 2015 are a key factor in driving
occupiers to reassess their office requirements in London.
Increased pre-letting activity is likely in 2013 as tenants move
fast to secure the best available office
space.

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