Colliers International research shows that office occupier take-up in central London has hit 6m sq ft in the year to date, with the entire second quarter space expected to hit 3.3m sq ft.
On the first day following the election, Colliers’ West End agency team received more than 120 enquiries, which signalled pent-up demand from businesses awaiting the election results.
Paul Smith, Colliers co-head of central London agency, said: “Many occupiers were inevitably sitting on the fence in terms of addressing their office occupancy needs for about eight weeks in the run up to the general election but the hiatus came to an end once the Conservative government was announced.”
More than 65% of West End office take-up was in the 5,000+ sq ft market though significant shortages of sub 2,000 sq ft units saw rent levels in some villages see double digit percentage uplift from Q1 to Q2.
Colliers predict average annual rental growth for 2015 is expected to hit 11.7% in London, though Midtown and City markets are set to see growth exceed this amount.