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West End - W1 & SW1

The West End market regained its strength in the fourth quarter. Take-up in the W1 & SW1 postcodes totalled around 1.1 million sq. ft. following a disappointing third quarter. This puts the annual figure for 2006 just over 4 million sq. ft. - down on the previous two years.

The largest transaction was on the fringes of the market in Horseferry Road where Burberry Group took 157,000 sq. ft. from Derwent Valley Holdings. Elsewhere Knight Frank committed to 80,000 sq. ft. of space at London & Regional's 55
Baker Street, which is scheduled for completion in September this year. They will be joining BDO Stoy Hayward who pre-let 165,000 sq. ft. at the scheme in 2005.

British Land signed up to 39,000 sq. ft. at their own York House development on Seymour Street prior to its completion. While at Cardinal Place, Interpublic GIS took 38,000 sq. ft. from Land Securities.

Availability in the West End stands at around 3 million sq. ft., a low point in the cycle so far that peaked at nearly 8 million sq. ft. available at the end of 2004. The largest new space available is still at Cardinal Place where some 200,000 sq. ft. is being marketed. There is 60,000 sq. ft. on offer at 4 Victoria Street while in Soho, There is 54,000 sq. ft. available at 72 Broadwick Street.

The largest secondhand space available is at Victoria Central on Buckingham Palace Road where 83,000 sq. ft. is available . At 76 Grosvenor Street, 80,000 sq. ft. is being marketed.

Rents in the core West End have been rising fast with £120 per sq. ft. being reported in early 2007. Prime rental levels are currently inexcess of £100 per sq. ft. in Mayfair and St James. Average rents for new or refurbished space stand at £57.50 per sq. ft. while secondhand space comes in at £37.50 per sq. ft.

• The City (EC1 - EC4)
• Midtown (WC1 & WC2)