Central London Lettings Jan-Feb 2015

Central London office lettings dropped in the first two months of 2015 to just under 990,000 sq ft in 60 deals in January and February 2015.

The months were was characterised by a shortage of large deals, with only the 60,000 sq ft letting to Hewlett Packard at 1 Aldermanbury Square, EC2 and 167,000 sq ft to WeWork at More Place, EC2, the only ones over 50,000 sq ft. Other large lettings included deals to Investec, Aimia and the Royal College of Pathologists

Business Services and the computer and IT sectors topped the table of lettings by sector, helped by the WeWork and HP deals, followed by financial services and transport. The media and law sectors looks likely to provided some momentum in the months ahead.

By area, the City accounted for over half the deals and 62pc of the floorspace let in the months, while Midtown saw 10 deals totaling 120,000 sq ft including a major deal to Aimia.

The volume of grade A (newly built or refurbished office space) let during the month dipped to under 300,000 sq ft as transactions for newly developed or refurbished space slowed during the period. However there are a number of large lettings in the pipeline at ‘under offer’ stage.

Metropolis is preparing a report on current office deals under offer in London based on its extensive database.