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Leasing transactions in the City reached 0.87m sq ft in Q3, 85% up y/y and bringing YTD take-up to 2.2m sq ft, which is 5% down on the same period last year (2.3m sq ft). The City Core market accounted for 69% (0.6m sq ft) of overall City take-up.
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T. Row Price's new lease on 5 Paternoster Square, at 135,536 sq ft, was the largest deal of the quarter, closely followed by Inmarsat's 121,000 sq ft letting of Great Portland Estates' scheme at 50 Finsbury Square, EC2 on a 15-year lease with a 10-year break.
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The TMT sector accounted for the largest share of quarterly take-up for the first time since Q3 2019 (33%). This was closely followed by Banking & Finance, which took 29%. Professional Services, however, remains the largest source of demand so far this year, having taken 0.5m sq ft of space and 25% of overall take-up.
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Supply in the City fell 11% q/q to stand at 8.6m sq ft. This equates to a vacancy rate of 9.0%, and remains above the ten-year quarterly average of 7.2%. Grade A vacancy, however, remains very low, at 3.9%, although up 20 bps on vacancy at year-end 2020.