Central London offices see November take-up boost

12th December 2016

Central London office take-up in November rose to 1m sq ft, representing a monthly increase of 118% and bringing take up in line with the 10-year monthly average, according to CBRE.

A total of six deals of over 50,000 sq ft transacted during November, more than any other month so far this year. The largest deal of the month saw Fidelity acquire 105,800 sq ft at 4 Cannon Street, EC4.

The business services sector represented the largest proportion of take up in November at 27%, followed by the banking and finance sector (16%). Over the last 12 months, the creative industries sector has represented the largest proportion of take up in central London at 26%.

Chris Vydra, head of City office leasing at CBRE, said the boost was down to positive sentiment about London in the wake of the referendum and new space requirements created by mergers in the legal and insurance sectors.

However, the central London vacancy rate rose to 4.3% from 3.8%. Availability in central London increased by 4% in November 2016 to stand at 14.2m sq ft, representing a year-on-year increase of 29%. Despite the increase, availability remained below the 10-year average of 14.6m sq ft, according to CBRE.

Under offers fell by 12% over the course of the month to stand at 2.9m sq ft. Despite the fall, under offers in central London remained 4% above the 10-year average of 2.8m sq ft.

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