London Lettings – February 2017

Central London office lettings in February 2017 recorded 905,000 sq ft of deals from 54 mid-large size transactions (5,000 sq ft+) during the month.

The February figure represents a big rise on the 567,000 sq ft of lettings in January, to a more normal level of market activity.

February was characterised by 9 office deals over 20,000 sq ft, which included the Expedia’s 136,000 expansion at the Angel Building in London, EC1; Arup pre-let 133,000 sq ft at Derwent London’s  under construction 80 Charlotte Street, London, W1 scheme, which is due to complete around June 2019 and Office Group took 70,000 sq ft at 84 Eccleston Square, London, SW1.  Pre-lets have accounted for over 35% of 2017’s take-up to date.

Tech and IT services topped the table of lettings by sector, underpinned by the Expedia deal, this was followed by property services with large deals involving Arup and Kier Property. Business services also performed well helped by the letting to the Office Group. Office deals under offer in central London stayed at 2.1m sq ft, including a large pending deal at 28 Chancery Lane, WC2.

By area, the City accounted for a modest 21pc of the office floorspace let in February – a fallback even from the 34pc in January. The West End saw an exceptional 450,000 sq ft of take-up. Midtown contributed 220,000 sq ft of lettings more than the City. Current London office demand is calculated to be around 3.5m sq ft in the City and 3.2m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached an impressive 500,000 sq ft (55% of the monthly total), as transactions for new space maintained their recent strong showing.

Metropolis has just released its eagerly awaited London Fit-Out report for 2017. Details from Andy King at andy@metroinfo.co.uk

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