Total take-up of office space last year climbed to 13.9 million sq ft across the capital, a positive increase on the previous year, which achieved 13.7 million sq. ft.

suggesting that a new cycle for the market is firmly underway.

Currently there is around 17.5 million sq ft of available office space, which is a dramatic improvement on the 26.3 million square feet recorded in January 2005.

The West End was last year's star performer with approximately 4 million square feet in take-up compared to just 3.2 million in 2004.

The City also had a good year finishing on an estimated 5.8 million sq. ft. of space let, a rise from 5.2 million in 2004. Like the West End, the City has benefited from robust demand from the financial services and accounting sectors.

This activity has fuelled strong rental growth and overall capital values in the office sector have grown by upwards of 15%.

"Given the present combination of robust demand and a constrained development pipeline, the steadily improving situation in central London is likely to continue throughout 2006, "says John Forrester of DTZ. "While there has been some concerns over economic conditions in the UK, in particular in regard to consumers, it is well to remember that the central London economy is internationally facing, and is benefiting from buoyant demand for financial and professional services. Based on recent corporate trading statements and interim results, we expect the financial and professional business sectors to continue to drive the office market this year."