EA Shaw said today that availability in Soho, Covent Garden, Midtown and Southbank continues to increase and is now 126% higher than the levels experienced 12 months ago.
In its Q3 2008 market report published today it said that availability has just tipped over the 1m sq ft the first time for around 2 ½ years in Midtown.
However, the vacancy rate in Midtown is still only 4.1% and 2.8% for Southbank.
It said that demand is down again on long term averages, but the amount of space under offer has increased from last quarter.
The development pipeline remains constant north of the River and has decreased slightly in the Southbank said EA Shaw.
'Following heavily negotiated terms on some trophy lettings, we are only now witnessing more cases of quoting rental readjustments and incentives are continuing to move out,' it said.