July 2016 Central London Lettings

Central London office lettings in July 2016 recorded just over 830,000 ft of deals from 35 mid-large size transactions (5,000 sq ft+) during the month. The July figure represents a major increase on the 640,000 sq ft in June and brings some signs of activity returning after the poor Q2.

July was characterised by 12 office deals over 20,000 sq ft, including Wells Fargo Bank at the under construction 33 Central, EC4; PA Consulting at the under construction Verde scheme, SW1; Guys & St Thomas NHS at Becket House, SE1 and Exterion Media at the recently-completed Lacon House, WC1

Financial services topped the table of lettings by sector, helped by the Wells Fargo deal. This was followed by professional sector, boosted by PA Consulting’s pre-letting. Media and business services are also performing well. Office deals under offer in central London remain around 2.9m sq ft and include two large pending deals in Midtown.

By area, the City accounted for 65pc of the office floorspace let in July. The West End saw 150,000 sq ft of take-up. Southbank had a good month helped by the Guys & St Thomas deal. 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 hit an impressive 429,000 sq ft (52% of the total), as transactions for new space recovered slightly in July.

New research from Metropolis reveals there are some 400 medium/large companies in central London which have yet to make decisions on leases due to expire in 2017.

Reasons to be Post-Brexit Cheerful 1, 2, 12…

Despite a lacklustre Q2 London office market in the run up to EU referendum vote, the July deals have come thick and fast this week as the market shakes off the blues. Deals concluded this week have included these 12:

Wells Fargo, the US bank, has bought the under construction 227,000 sq ft 33 Central office development in London, EC4 for its own occupation as its new London HQ.

The Government Property Unit has signed for 400,000 sq ft of deals at 20 Cabot Square, London, E14 for a host of public sector bodies including 150,000 sq ft for regulator OFGEM.

Derwent London has pre-let 84,600 sq ft in four deals at its 185,000 sq ft refurbishment of The White Chapel Building E1. Incoming tenants include Reddie & Grose, Perkins & Will, The Shipowners’ Club and Unruly Media.

Exterion Media, the advertising agency, is taking the 2,323 sq m (25,000 sq ft) seventh floor of the newly-completed 84 Theobalds Road office scheme, London, WC1

David Game Tutorial College take the 60,000 sq ft 31 Jewry Street, London, EC3.

University College London take 23,000 sq ft at 1 St Martin’s Le Grand, EC1.

Kames Capital and MS Amlin take expansion space at the Leadenhall Building.

Public Lab, a DIY environmental science community, is due to sign for 15,000 sq ft at Aldgate Tower, London, E1.

Further details of these and many more upcoming relocations are available to Metropolis subscribers at http://www.metroinfo.co.uk