Central London office lettings in August 2018

Central London office lettings in August 2018 reached just over 750,000 sq ft from 40 mid-large size office transactions (5,000 sq ft+) during the month. The August 2018 figure is below the current monthly London average of 1m sq ft.

August was characterised by 9 office deals over 20,000 sq ft, which were led by the Investec’s 123,000 sq ft deal to pre-let 55 Gresham Street, EC2, N1; Competition and Markets Authority 105,000 sq ft deal at 25 Cabot Square, E14 and Hiscox’s 75,000 sq ft pre-let at 22 Bishopsgate, EC2.

Financial services topped the table of lettings by sector, compiled by Metropolis, underpinned by the Investec deal. This was followed by business services led by a number of lettings to Office Space in Town and LEO. Insurance, professional and media were also well represented. Office deals ‘under offer’ in central London increased to 3.9m sq ft, and pending deal volumes are healthy in nearly all sub-markets, with a number of deals pending.

By area, the City accounted for 47pc of the office floorspace let in August 2018 at 354,000 sq ft. The West End saw 150,000 sq ft of take-up. Midtown contributed 69,000 sq ft of lettings. Current London office demand is calculated to be around 3.7m 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 413,000 sq ft sq ft (55% of the monthly total), as transactions for new space resumed their recent strong showing. Availability is dominated by secondhand space in all London markets.

Metropolis research is currently monitoring 645 ‘live’ London requirements, with deals for space of up to 1.8m sq ft due to sign in the next few months.

Cityoffices is working on its autumn ‘Skyline Survey’ in London. Further details of office scheme planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on Metropolis and the Cityoffices database from Andy King at andy@metroinfo.co.uk

Metropolis Movers in August 2018

Metropolis ran 601 business leads on ‘office movers’ in August 2018. If all reported moves were added together the total would exceed 15 million sq ft of office searches and transactions, researched by Metropolis’ unique market-led intelligence research team, last month.

London was the largest region with 309 business leads during month, but there were also strong showings from the South East (72),  North West (60) and Yorkshire (46). Financial services, IT and business services were the largest business sectors planning relocations or agreeing moves during the month.

The relocation leads geographically covered the whole UK and provided details of the size of the office occupier, company likely move dates, a description of the reasons for the move, its business sector and full contact details including an address for written inquiries, at least one telephone number and in most cases an email address. Some of the largest planned moves and top picks amongst the 601 July leads, included those on occupiers AstraZeneca, NTT Data, BNY Mellon, Booking.com and BGC International.

The August 2018 leads included 203 ‘identified requirements’, including 120 in London. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 203 searches, 104 were newly posted office searches, not previously notified to clients.

The most recent research also included 133 ‘potential movers,’ which were mainly longer-term leads on occupiers, considering a relocation, but the occupier has yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have just signed for new office space and have set a move date, including some large pre-lets and companies inviting tenders for fit-out contracts. The shortest planned move date is just over a month away, whilst the longest was late 2021.

Recent research by Metropolis concluded that a conservative estimate of ‘live’ business tender opportunities on the database in recent months, exceeded £1bn of business.

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