^{Source: Savills Research}

■ The strong start to the year appears to defy predictions that the looming EU referendum would dampen demand. However, with only 500,315 sq ft of supply under-offer at the end of Q1, 17% below the long-term average, it appears there may be a cooling in take-up in Q2 ahead of June 23rd.

■ The largest transaction to complete in March saw New Look acquire 127,093 sq ft at King Cross’s R7, on confidential terms. The development is due for completion in mid 2017.

■ Elsewhere, Palantir acquired the entire 64,606 sq ft at 20 Soho Square, W1 on a 10 year lease at an average rent of £74.00 per sq ft.

■ Tech & Media firms were the most active in Q1 2016 accounting for 26% of total take-up. Retail & Leisure firms were the second most active accounting for 19% of total take-up, with Serviced Office Providers third accounting for 15%.

^{Source: Savills Research}

■ The highest recorded rent in March was £117.37 per sq ft, the transaction saw TELF B&T UK acquire the 6th floor at 2 St James’s Street totalling 1,278 sq ft, on a 5 year lease.

■ The average prime rent in Q1 2016 was £110.34 per sq ft, 5% above Q4 2015’s average prime rent of £104.90 per sq ft.

■ Similarly, the average Grade A rent for Q1 2016 was £75.45 per sq ft, 3% above 2015's average Grade A rent of £73.07 per sq ft.

■ Supply at the end of Q1 2016 stood at 3.63m sq ft, with 76% of a Grade A standard. This equates to a vacancy rate of 3% and is 1% above the 3.61m sq ft of supply available at the end of Q4 2015 (Graph 2).

■ Supply was boosted by the addition of Nova North, SW1 to the pipeline. Due for completion in July, the Land Securities development totals 184,000 sq ft.

^{Source: Savills Research} 

Analysis close up

^{Completions due in the next six months are included in the supply figures}

^{* Average prime rents for preceding three months}

^{** Average rent free on leases of five years for preceding three months}

^{Source: Savills Research}