Central London office lettings in January 2018

Central London office lettings in January 2018 reached a slightly downbeat 850,000 sq ft of deals from 46 mid-large size transactions (5,000 sq ft+) during the month. The January 2018 figure slightly underperforms the current monthly average of 1m sq ft.

January was characterised by 14 office deals over 20,000 sq ft, which included Google’s 127,000 sq ft re-letting at Building R7, Handyside Street, Kings Cross; Mimecast’s 78,000 sq ft letting at Finsbury Avenue, EC2 and Dell took 23,000 sq ft at Creechurch Place, EC3.

Media topped the table of lettings by sector, underpinned by Mimecast and Intuit deals. This was followed by IT services and business services mainly underpinned by serviced office operators. Office deals ‘under offer’ in central London rose slightly to 3.5m sq ft, but pending deal volumes are healthy in nearly all sub-markets, with some 40 deals pending.

By area, the City accounted for 34pc of the office floorspace let in January 2018 at 291,000 sq ft. The West End saw 228,000 sq ft of take-up. Midtown contributed 236,000 sq ft of lettings, plus 90,000 sq ft of Docklands deals. Current London office demand is calculated to be around 3.1m sq ft in the City and 2.8m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 433,000 sq ft (51% 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 635 ‘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 current ‘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 the report and the Cityoffices database from Andy King at andy@metroinfo.co.uk

 

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Central London office lettings in November 2017

Central London office lettings in November 2017 reached a healthy 1m sq ft of deals from 40 mid-large size transactions (5,000 sq ft+) during the month. The November figure matches the current monthly average of 1m sq ft .

October was characterised by 17 office deals over 20,000 sq ft, which included Lloyd Bank’s 117,000 sq ft letting at 125 London Wall, EC2, Hyperion’s 115,000 sq ft letting at Creechurch Place, EC3; WeWork took 90,000 sq ft at 131 Finsbury Pavement, EC2 and GAM took 42,000 sq ft at 8 Finsbury Circus, EC2.

Business Services topped the table of lettings by sector, underpinned byWeWork deals. This was followed by financial services with the large deals involving Lloyds Bank, GAM and Blue Crest.  Insurance and Media also performed well, helped by the lettings to Hyperion and Moonpig. Office deals ‘under offer’ in central London fell slightly to 3.4m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 57pc of the office floorspace let in November at 563,000 sq ft. The West End saw 235,000 sq ft of take-up, underpinned by WeWork. Midtown contributed 132,000 sq ft of lettings, although there were no significant Docklands deals. Current London office demand is calculated to be around 3.1m sq ft in the City and 2.8m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 661,000 sq ft (66% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 635 ‘live’ London requirements, with deals for space of up to 1.9m sq ft due to sign in the next few months.

Cityoffices and Metropolis  has produced its latest London Skyline report for Q4 2017. The report contains details of new office schemes under construction, demolitions underway and projections for future construction. Further details of planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on the report and the Cityoffices database from Andy King at andy@metroinfo.co.uk

Central London Lettings and Pre-lets – October 2017

Central London office lettings in October 2017 reached a healthy 1.3m sq ft of deals from 60 mid-large size transactions (5,000 sq ft+) during the month. The October figure exceeds the current monthly average of just under 1m sq ft .

October was characterised by 14 office deals over 20,000 sq ft, which included Dentsu Aegis’ 310,000 sq ft pre-let at 1 Triton Square, NW1, Sidley & Austin’s 120,000 sq ft pre-let at 70 St Mary Axe, EC3; WeWork took 107,000 sq ft at One Poultry, EC3, and Red Bull took 37,000 sq ft at Seven Dials, WC2.

Media topped the table of lettings by sector, underpinned by the Dentsu Aegis deal. This was followed by professional services with the large deals involving Sidley Austin and Grant Thornton.  Business services also performed well, helped by the lettings to WeWork and Orega. Office deals ‘under offer’ in central London fell slightly to 3.5m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 32pc of the office floorspace let in October at 414,000 sq ft. The West End saw 553,000 sq ft of take-up, underpinned by Dentsu Aegis. Midtown contributed 147,000 sq ft of lettings. Current London office demand is calculated to be around 3.2m sq ft in the City and 2.9m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 718,000 sq ft (55% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 630 ‘live’ London requirements, with deals for space of up to 1.8m sq ft due to sign in the next few months.

Cityoffices and Metropolis  has produced its latest London Skyline report for Q4 2017. The report contains details of new office schemes under construction, demolitions underway and projections for future construction. Further details of planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on the report and Cityoffices from Andy King at andy@metroinfo.co.uk

Central London Lettings March 2017

Central London office lettings in March 2017 recorded nearly 1.05m sq ft of deals from 64 mid-large size transactions (5,000 sq ft+) during the month.

The March’s figure represents a rise on the 905,000 sq ft of lettings in February, and brings the Q1 2017 total upto nearly 2.6m sq ft of market activity, close to the recent average.

March was characterised by 13 office deals over 20,000 sq ft, which included Cancer Research’s 100,000 sq ft pre-let in Stratford: the Amazon’s 89,000 expansion at Principal Place in London, E1; ITV taking 88,000 sq ft at Waterhouse Square, WC1 and HSBC taking 31,000 sq ft at 71 Queen Victoria Street, EC4.

Tech and IT services topped the table of lettings by sector, underpinned by the Amazon deal, this was followed by charity headed by the Cancer Research transaction and media with large deals involving ITV and Buzzfeed. Business services also performed well helped by the lettings to Instant Offices and The Space. Office deals under offer in central London remain at 2.1m sq ft.

By area, the City accounted for an improved 40pc of the office floorspace let in March – a doubling of the February level. The West End saw 220,000 sq ft of take-up. Midtown contributed 140,000 sq ft of lettings. Current London office demand is calculated to be around 3.5m 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 243,000 sq ft (23% of the monthly total), as transactions for new space maintained their recent strong showing.

Cityoffices and Metropolis are shortly to release its twice yearly Skyline report on the London office construction market. The Q1 report features details of the 100 schemes under construction and the trends for the next wave of schemes. Details on Cityoffices from Andy King at andy@metroinfo.co.uk

London Lettings – February 2017

Central London office lettings in February 2017 recorded 905,000 sq ft of deals from 54 mid-large size transactions (5,000 sq ft+) during the month.

The February figure represents a big rise on the 567,000 sq ft of lettings in January, to a more normal level of market activity.

February was characterised by 9 office deals over 20,000 sq ft, which included the Expedia’s 136,000 expansion at the Angel Building in London, EC1; Arup pre-let 133,000 sq ft at Derwent London’s  under construction 80 Charlotte Street, London, W1 scheme, which is due to complete around June 2019 and Office Group took 70,000 sq ft at 84 Eccleston Square, London, SW1.  Pre-lets have accounted for over 35% of 2017’s take-up to date.

Tech and IT services topped the table of lettings by sector, underpinned by the Expedia deal, this was followed by property services with large deals involving Arup and Kier Property. Business services also performed well helped by the letting to the Office Group. Office deals under offer in central London stayed at 2.1m sq ft, including a large pending deal at 28 Chancery Lane, WC2.

By area, the City accounted for a modest 21pc of the office floorspace let in February – a fallback even from the 34pc in January. The West End saw an exceptional 450,000 sq ft of take-up. Midtown contributed 220,000 sq ft of lettings more than the City. Current London office demand is calculated to be around 3.5m 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 an impressive 500,000 sq ft (55% of the monthly total), as transactions for new space maintained their recent strong showing.

Metropolis has just released its eagerly awaited London Fit-Out report for 2017. Details from Andy King at andy@metroinfo.co.uk

Central London Office Lettings March 2015

Central London office lettings rose in March 2015 to just over 1.25m sq ft sq ft of transactions in 75 deals during the month.

The month was characterised by a return of the large deals, with the 260,000 sq ft pre-let to Deloitte at New Street Square, EC4, the 61,000 sq ft letting to Investec at 30 Gresham Street, EC2 and the 52,000 sq ft letting to Deutsche Bank at the Willis Building, EC3. Other large lettings included deals to Tag Worldwide, Instant Offices and Expedia.

Professional services and financial sectors topped the table of lettings by sector, helped by the Deloitte and Investec deals, followed by computer/IT and business services. The financial sector has the largest share of the 3m sq ft of space currently under offer which is likely to convert into deals in the months ahead. There has also been a noticeable surge in new requirements being launched in the London market.

By area, the City accounted for over half the deals (43) and 51pc of the floorspace let in the month, while Docklands saw nearly 100,000 sq ft let in just three deals to financial companies.

The volume of grade A (newly built or refurbished office space) let during the month increased to over 460,000 sq ft as transactions for newly developed or refurbished space rose again.

Metropolis is preparing a spring 2015 report on office space just completed and under construction in London based on its extensive database of planned office schemes.

Central London Office Lettings 2014

Sharddong

Best Year For Deals Since 2007

Metropolis has recently published its latest client newsletter, this month a special report on central London office lettings in 2014. Highlights include:

– Central London deals hit 12.8m sq ft, up 5% on 2013 take-up
– 14 deals were over 100,000 sq ft
– Metropolis is tracking over 700 central London office requirements
– Just over 2m sq ft currently under offer

The newsletter was provided exclusively to Metropolis clients. If you are interested in finding out how Metropolis could help your company win new business please visit us at http://www.metroinfo.co.uk.