Central London Office Market in April 2019

Central London office lettings in April 2019 reached just over 1 million sq ft, from 35 mid-large size office transactions (5,000 sq ft+) during the month. The April 2019 figure is in line with the current monthly London average of 1m sq ft.

April was characterised by 16 office deals over 20,000 sq ft, which were led by Facebook’s 175,000 deal at expansion at Regents Place, NW1 along with a large pre-let to G-Research at the under construction Soho Place in London, W1; Spaces at Cabot Square, E14; Trade Desk expanding at One Bartholomew Square, EC1; plus Mastercard at 1 Angel Lane, EC1 and Splunk in Paddington, W2.

IT Services topped the table of lettings by sector, compiled by Metropolis, underpinned by the Facebook deal and G-research’s expansion pre-let. This was followed by business services led by a number of serviced office sector deals. Financial services, led by Mastercard, plus media led by Trade Desk were also well represented.

Office deals ‘under offer’ in central London rose to 3.6m sq ft, and pending deal volumes are healthy in nearly all sub-markets, with a number of deals in solicitor’s hands.

By area, the City accounted for 28% of the office floorspace let in April 2019 at 280,000 sq ft. The West End saw 500,000 sq ft of take-up. Midtown contributed 139,000 sq ft of lettings and Southbank 25,000 sq ft. Current London office demand is calculated to be around 3.8m sq ft in the City and 3.1m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month, reached a healthy 417,000 sq ft sq ft (42% of the monthly total), as transactions for new space maintained the recent strong showing. Availability is dominated by secondhand space in all London markets.

Metropolis research is currently monitoring 630 ‘live’ London office requirements, including a large volume of requirements from the banking and finance sectors, with pending deals for space of up to 1.5m sq ft due to sign in the next few months.

Paul Ives Metropolis

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