Central London Office Lettings April 2016

Central London office lettings in April 2016 recorded just under 650,000 ft of deals from 40 transactions during the month. The April figure represents a fall back from the 1.4m sq ft recorded in March and is below the recent average of 1m sq ft per month.

April was characterised by 11 office deals over 20,000 sq ft, including Palantir Technologies at 20 Soho Square, W1; Charles Stanley at 55 Bishopsgate, EC2 and Capital One at White Collar Factory in City Road, EC1.

Financial services topped the table of lettings by sector, helped by the Charles Stanley and Capital One deals. This was followed by insurance boosted by Chaucer’s move to 55 Bishopsgate. Retail and transport services are also performing well. Office deals under offer have risen to over 3m sq ft and include three large pending deals in the City and Docklands, with analysts believing some deals are on hold until after the Brexit vote.

By area, the City accounted for only just over a 50pc of the floorspace let in April. The West End had another quiet month, but the pace picked up in Midtown with over 100,000 sq ft let in 5 deals. Current London office demand is calculated to be around 4.5m 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 249,000 sq ft (39% of the total), as transactions for newly developed or refurbished space converged towards the monthly average.

Some 50 new office schemes were started in the last 6 months and Cityoffices.net, which exclusively prepared the research for Deloitte’s recent Crane Survey, will publish its own analysis shortly.