July 2016 Central London Lettings

Central London office lettings in July 2016 recorded just over 830,000 ft of deals from 35 mid-large size transactions (5,000 sq ft+) during the month. The July figure represents a major increase on the 640,000 sq ft in June and brings some signs of activity returning after the poor Q2.

July was characterised by 12 office deals over 20,000 sq ft, including Wells Fargo Bank at the under construction 33 Central, EC4; PA Consulting at the under construction Verde scheme, SW1; Guys & St Thomas NHS at Becket House, SE1 and Exterion Media at the recently-completed Lacon House, WC1

Financial services topped the table of lettings by sector, helped by the Wells Fargo deal. This was followed by professional sector, boosted by PA Consulting’s pre-letting. Media and business services are also performing well. Office deals under offer in central London remain around 2.9m sq ft and include two large pending deals in Midtown.

By area, the City accounted for 65pc of the office floorspace let in July. The West End saw 150,000 sq ft of take-up. Southbank had a good month helped by the Guys & St Thomas deal. Current London office demand is calculated to be around 4m 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 hit an impressive 429,000 sq ft (52% of the total), as transactions for new space recovered slightly in July.

New research from Metropolis reveals there are some 400 medium/large companies in central London which have yet to make decisions on leases due to expire in 2017.

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