Office Market Defies Gravity

Office market reviews for 2018 suggest that he UK office market continued to defy gravity as the third and fourth quarters recorded one of the highest levels of office letting activity in the last five years.

The Central London market is seeing quarterly take-up of up to 3.5 million sq ft, the highest since 2015. The increase was boosted by a number of large transactions in new or recently refurbished space, which is accounting for two-thirds of all deals. The number of pre-lets announced in the year has broken records. Space under offer in central London currently totals nearly 3 million sq ft, suggesting year-end take-up could exceed 12 million sq ft and be the highest seen in the capital since 2015.

Regional cities are also seeing high office mover activity with almost 2 million sq ft of space acquired per quarter, the second-highest on record. Letting activity in Glasgow reached a record level, and Newcastle recently reached a 14-year quarterly high. All but one of the eight regions witnessed a quarter-on-quarter increase in take-up.

Metropolis Research reported on over 5,000 individual office moves over the course of the year, with many more occupiers poised to make decisions in 2019

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