London Lettings – February 2016

Central London office lettings picked up in February 2016 with 984,000 sq ft of office space transacted in 43 deals in during the month. The figure represented a 20% increase on the January total, but below the recent average of 1m sq ft per month.

February was characterised by 11 office deals over 20,000 sq ft, including Capita at the Copyright Building, W1; Aecom at Aldgate Tower, E1 and Zoopla at Cooperage Building, SE1.

Business services again topped the table of lettings by sector, helped by Capita’s 94,000 sq ft pre-let and more lettings to serviced office operators, this was followed by professional services boosted by Aecom. Media and property-related sectors are also performing well. Office deals under offer is holding at around 2.7m sq ft, with notable activity in Docklands and Southbank.

By area, the City accounted for only just over a 68pc of the floorspace let in February. The West End had a quiet month, aside from the Capita deal, but the Southbank saw above average activity. Current London office demand is calculated to be around 4.1m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 338,000 sq ft (34% of the total), as transactions for newly developed or refurbished space continue to take a slightly smaller part of the total than recent months.

Some 7m sq ft of new office space is expected to complete in London in 2016. Further details of schemes and pre-lets on Cityoffices.net.

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