Telegraph: London's empty office space tops 10m sq ft

Approximately 11.9% of City offices are vacant – up by a tenth already in 2009 and more than double the 5.2% prior to the onset of the credit crisis in 2007, as increasing numbers of businesses collapse or downsize. It is first time since 2004 that empty office space has breached the 10m sq ft mark, according to research by property agent NB Real Estate. The slump is placing immense pressure on rents, which have now fallen 27% in the past year from an average of £65 per sq ft to £47.50. Increasing supply through the completion of new developments is hastening the fall in rents, although the situation is even more dire in the West End. The failure of a large number of hedge funds, many of which are based in the area, has pushed rents down 37.5pc to £75 per sq ft.