Central London Office Lettings March 2016

Central London office lettings recorded an exceptional March 2016 with 1.35m sq ft of office space transacted in 53 deals in during the month. The figure represents a near 40% increase on the February total and well above the recent average of 1m sq ft per month.

Q1 2016 saw a healthy 3.1m sq ft of lettings in central London, which is one of the strongest quarters for office take-up in the last three years. If current trends continue the total office take-up for the year will again top 12m sq ft.

March was characterised by 11 office deals over 20,000 sq ft, including Reuters at 5 Canada Square, E14; New Look at Kings Cross Central, N1 and Jefferies Investment Bank pre-let at 100 Bishopsgate, EC2.

Media topped the table of lettings by sector, helped by Thomson Reuters 315,000 sq ft Canary Wharf deal. This was followed by financial services boosted by Jefferies and Oaktree’s pre-let at Verde scheme. Professional and business services are also performing well. Office deals under offer is holding at around 2.5m sq ft, with new negotiations from the likes of Randall & Quilter and Palantir Technologies.

By area, the City accounted for only just over a 47pc of the floorspace let in March. The West End had a quiet month, aside from the Oaktree deal, but the Docklands saw above average activity. Current London office demand is calculated to be around 4.2m sq ft in the City and 2.1m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 599,000 sq ft (44% of the total), as transactions for newly developed or refurbished space rose to take a higher proportion of lettings than has been the case in 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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