London Lettings – January 2017

Central London office lettings in January 2017 recorded 567,000 sq ft of deals from 35 mid-large size transactions (5,000 sq ft+) during the month.

The January figure represents a fallback from the exceptional 1.8m sq ft of lettings in December as a more normal level of market activity resumed.

January was characterised by 9 office deals over 20,000 sq ft, which included the McKinsey’s 97,000 sq ft pre-letting of the under construction Post Building in London, WC1; COS Stores (H&M) took a 60,000 sq ft pre-let at the also under construction 1 New Oxford Street, WC1 and Antares Underwriting took 31,500 sq ft at 21 Lime Street, EC3.

Professional services topped the table of lettings by sector, underpinned by the McKinsey deal, this was followed by IT services with large lettings to Nexmo amongst others. Retail also performed well helped by the letting to the H&M. Office deals under offer in central London stayed at 2.1m sq ft after the stream of completed deals.

By area, the City accounted for a modest 34pc of the office floorspace let in January – a fallback even from the 44pc in December. The West End saw 150,000 sq ft of take-up. Midtown contributed 195,000 sq ft of lettings as much as the City. Current London office demand is calculated to be around 4m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached an impressive 306,000 sq ft (54% of the monthly total), as transactions for new space maintained their recent strong showing.

January Round Up

Metropolis ran 583 ‘movers’ in the month of January 2017, which if all moves were added together would account for 3.2 million sq ft of office transactions, researched by Metropolis’ unique market led intelligence team. London was the largest region with 270 leads, but there were also strong showings from the South East, Scotland and Yorkshire

The business leads covered the whole UK and provided details of the size of the office occupier, its 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.

The January 2017 leads included 158 ‘identified requirements’. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 158 searches, 105 were new office occupiers, not run on the database before.

This month’s batch also included 150 ‘potential movers’ which mainly described conversations with occupiers which are considering a relocation, but have yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have 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 move date is just over a month away, whilst the longest was January 2020.

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Cityoffices.net, the sister property leads service to Metropolis, saw a further 25 stories posted this month covering new development opportunities planning applications, consents, construction starts and development teams. The database now covers over 200 office schemes in the pipeline for construction starts in 2017-2020.

For more information on Cityoffices, email Andy at andy@metroinfo.co.uk