Speculative development in the West End dropped 10% in the first quarter.

There was 1.8m sq ft of speculative development under way in the first three months of the year, down from 2m sq ft in Q1 2012.

During the same period demand rose to 4.8m sq ft from 4.6m sq ft, research from Strutt & Parker shows.

Take-up in the first quarter stood at 453,021 sq ft, falling from 663,184 sq ft last year.

Deals during the period included Westrock paying £84 per sq ft for space at One Chapel Place, W1, and Angelo, Gordon & Co agreeing a £105 per sq ft letting at 23 Savile Row, W1.

Strutt & Parker said it anticipates more demand from the oil and gas sectors in coming months, and more companies agreeing to pay for rents above £100 per sq ft.