THE office market in the South East, and in particular in the Thames Valley, is starting to take off again after three years in the doldrums, according to agents and property advisers CB Richard Ellis.

Figures for the first half of this year indicate that actual take-up in the South East office market was up 17 per cent over the last six months of 2003.

Over the same period there has been a near record volume of 1.65 million sq ft of space withdrawn from the South East office market by tenants deciding that they now wanted to take up previously excess capacity.

Major deals in the Thames Valley included BSkyB's 141,000 sq ft leasing of the former GlaxoSmithKline offices in Brentford.

Mike Ayton, CB Richard Ellis' director national office agency, said: "The overall upturn in occupier activity in the second quarter of 2004 is encouraging with the Thames Valley experiencing its strongest period since the start of 2001.

"The current rally in UK business confidence and the bullish earnings growth among US blue chip companies are, at last, having their impact on the key Thames Valley corridor."

Alan Chandler of commercial agents Stupples & Co, High Wycombe, said there has been a take-up such as the letting of Hawk House on the Peregrine Business Park which had been on the market for two years.

"There has been a small take-up now which we couldn't say a year ago," said Mr Chandler.

Clive Brocklehurst of Aitchison Raffety in the High Street, High Wycombe, said there has been a greater take-up since the beginning of the year, in particular in the rental market.

Mr Brocklehurst added: "For example we have let three out of four available offices in Lancaster Court on the Cressex Business Park, which had been empty for most of last year.

"We let them between February and April of this year.

"As usual the good stuff in the right place goes first."