More positive signs are emerging from the UK commercial property market, with occupier demand up six per cent in the first quarter of 2011.
Preliminary figures released by Jones Lang LaSalle suggest that there has been a marked turnaround in the sector compared to 2010 and also point to a return of business confidence.
In London's office investment market GBP 2.1 billion has been transacted since the start of the year, a 28 per cent increase compared to the same period last year.
Compared to the last quarter, in the City market there was an increase of 12 per cent to 7.8 million square feet which represents the first increase since June 2010. While in the West End, total occupier demand increased by 11 per cent to 4.3 million square feet.
"As a result of rising confidence in future rental growth, owners are increasingly seeking to retain exposure to London's office market and this is limiting investment supply," explained Damian Corbett, head of Office Capital Markets at Jones Lang LaSalle.