London Skyline Report 2017

Metropolis and Cityoffices have published their Winter 2017 survey of the London office market for clients and those due to take subscriptions in December 2017 and January 2018.

The new report covers:

  • Commentary on the 92 London office schemes under construction at the beginning of Q4 2017;
  • The report examines the 32 new London scheme starts between Q1 and Q3 2017, as well as schemes completed over the course of 2017;
  • The analysis looks at the next wave of schemes due to start construction over the next few months, with examples;
  • A section on occupier demand looks at space pre-let in under construction and recently completed schemes;
  • Further sections examine London office lease ends in 2016 and trace the destinations of those occupiers in 2017;
  • The report concludes looking ahead of 2018, in terms both of those 6m sq ft of schemes currently at demolition stage and those tipped to see construction starts over the next 12 months.

The closing sections of the report also cover forecasts of likely office completion levels in 2018-2020 and current levels of office demand amongst London occupiers, set against trends in the letting of grade A office space in central London.

All figures are based on Metropolis and Cityoffices’ huge weekly business leads bulletins and website which delivers 130+ weekly interviews with office occupiers considering relocations, fit-out news and office scheme developers.

If you would like to find out more about a trial subscription in December or January 2018 to Metropolis and claim a free Skyline report, then email Simon at simon@metroinfo.co.uk

 

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Central London Lettings and Pre-lets – October 2017

Central London office lettings in October 2017 reached a healthy 1.3m sq ft of deals from 60 mid-large size transactions (5,000 sq ft+) during the month. The October figure exceeds the current monthly average of just under 1m sq ft .

October was characterised by 14 office deals over 20,000 sq ft, which included Dentsu Aegis’ 310,000 sq ft pre-let at 1 Triton Square, NW1, Sidley & Austin’s 120,000 sq ft pre-let at 70 St Mary Axe, EC3; WeWork took 107,000 sq ft at One Poultry, EC3, and Red Bull took 37,000 sq ft at Seven Dials, WC2.

Media topped the table of lettings by sector, underpinned by the Dentsu Aegis deal. This was followed by professional services with the large deals involving Sidley Austin and Grant Thornton.  Business services also performed well, helped by the lettings to WeWork and Orega. Office deals ‘under offer’ in central London fell slightly to 3.5m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 32pc of the office floorspace let in October at 414,000 sq ft. The West End saw 553,000 sq ft of take-up, underpinned by Dentsu Aegis. Midtown contributed 147,000 sq ft of lettings. Current London office demand is calculated to be around 3.2m sq ft in the City and 2.9m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 718,000 sq ft (55% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 630 ‘live’ London requirements, with deals for space of up to 1.8m sq ft due to sign in the next few months.

Cityoffices and Metropolis  has produced its latest London Skyline report for Q4 2017. The report contains details of new office schemes under construction, demolitions underway and projections for future construction. Further details of planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on the report and Cityoffices from Andy King at andy@metroinfo.co.uk