London Lettings – January 2016

Central London office lettings experienced a slow start to 2016 with only 787,000 sq ft of office space transacted in 32 deals in January 2016. The figure represented an almost halving of the strong December lettings total.

January was characterised by 7 deals over 20,000 sq ft, including WeWork at Eastbourne Terrace, W2; Rathbone Bros at Finsbury Circus, EC2 and Office Group at 91 Wimpole Street, W1.

Business services topped the table of lettings by sector, helped by WeWork’s 106,000 sq ft and Office Group, followed by financial services boosted by Rathbone Brothers. Healthcare and professional sectors are also performing well. Office deals under offer fell to just over 2.5m sq ft.

By area, the City accounted for only just over a 25pc of the floorspace let in January. In contrast the West End had a good month with over 50pc of space transacted. Current London office demand is calculated to be around 4.5m sq ft in the City and 4m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 250,000 sq ft (32% of the total), as transactions for newly developed or refurbished space took a slightly smaller part of the total this month. Further details of schemes and pre-lets on Cityoffices.net.

Metropolis is working on an upcoming report on office requirements in London and across the UK.

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