London office leasing goes 6% above 10-year av in Q2
13th July 2017
Take-up of office space in Central London increased by 30% to 3.3m
sq ft in Q2 2017 - more than 6% above the 10-year average.
The two largest lettings highlighted by CBRE’s latest quarterly
offices data were deals to co-working provider WeWork: a 283,500 sq ft pre-let at 2 Southbank Place and
a 141,200 sq ft letting at 125 Shaftesbury Avenue.
There were a further six deals of over 50,000 sq ft in Q2, one of
which was over 100,000 sq ft (115,700 sq ft at London Fruit & Wool Exchange
to NEX Group).
Take-up saw quarter-on-quarter increases in all Central London
markets with take-up above-trend in the City, West End and Southbank and below
trend in Midtown and Docklands.
Driven by the WeWork deals, the business services sector
represented the largest proportion of take-up in Q2 at 36%, followed by
creative industries (29%) and banking and finance (17%).
Ever more under offer
Under offers also increased for the second quarter in a row,
rising by 9% in Q2 to stand at 3.5m sq ft,15% above the average of 2.8m sq ft.
The largest under offer in Central London was at 21
Moorfields (549,800 sq ft). There were quarterly increases in the
West End (+32%), Midtown (+32%) and Southbank (35%), but falls in the City
(-13%) and Docklands (-26%). Under offers were above their respective 10-year
averages in all Central London markets other than Docklands. The largest
proportion of under offers are located in the West End, which is at a record
high level of 1.4m sq ft.
Active demand in Central London was 6.2m sq ft at the end of Q2
2017 up from the 5.7m sq ft seen at the end of Q1.
Chris Vydra, executive director in the city leasing team at CBRE,
said: “It is encouraging to see the Central London leasing market rallying
following what has been a politically uncertain time for the UK. These
latest take-up figures are testament to confidence amongst businesses about
London’s significant advantages as a global business centre.”