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In the West End, take-up remained subdued reaching just 0.3m sq ft in Q1 2021, a 23% fall on Q4 2020. This is 62% down in Q1 2020 (0.8m sq ft) and down on the long term quarterly average of 0.8m sq ft.
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The largest deal to complete was at 40 Portman Square, W1 where Canadian Pension Plan Investment Board completed a sublease on the ground, 1st and 4th floors (42,000 sq ft).
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This contributed to the Banking & Finance sector taking the largest share of take-up in the West End at 22%, followed closely by the Professional Services sector (21%).
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Supply rose to 4.0m sq ft in Q1 2021, significantly up on the same period last year at 2.5m sq ft. This equates to a vacancy rate of 5.9%, up on the long term quarterly average (4.7%). Increasing tenant return space stood at 1.4m sq ft, accounting for a 34% share of total supply, a 30% rise on the previous quarter.
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Looking ahead, 0.9m sq ft of developments are set for completion in 2021. The largest to complete is The Lantern, 75 Hampstead Road, NW1 delivering 160,000 sq ft of office space.