Central London Lettings – June 2017

Central London office lettings in June 2017 bounced back just over 1.75m sq ft of deals from 108 mid-large size transactions (5,000 sq ft+) during the month.

The June figure represents a near tripling of the 600,000 sq ft sq ft of lettings in May. It brings the Q2 2017 central London lettings to a very respectable 3.1m sq ft and comfortably above the 2.4m sq ft in Q1.

June was characterised by 14 office deals over 20,000 sq ft, which included WeWork’s 283,000 sq ft pre-let of the under construction Southbank Place building, SE1: Framstore took 93,000 sq ft at 28 Chancery Lane, WC2; Industrial Light and Magic took 47,000 sq ft at Lacon House, Theobalds Road, WC1 and Hermes taking 46,000 sq ft at 150 Cheapside in EC2.

Business Services topped the table of lettings by sector, underpinned by WeWork deals, this was followed by media and financial services with large deals involving Industrial Light and Hermes. IT services also performed well, helped by the lettings to Misys and Reply. Office deals ‘under offer’ in central London held steady at 3.5m sq ft and volumes are healthy in nearly all sub-markets.

By area, the City accounted for 32pc of the office floorspace let in June at 566,000 sq ft. The West End saw 315,000 sq ft of take-up. Midtown contributed 400,000 sq ft of lettings, which was equalled by Southbank. Current London office demand is calculated to be around 3.3m 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 840,000 sq ft (48% of the monthly total), as transactions for new space resumed their recent strong showing.

Cityoffices and Metropolis are releasing its twice yearly Skyline report on the London office construction market. The summer report features analysis 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

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Central London Lettings – May 2017

Central London office lettings in May 2017 recorded just over 600,000 sq ft of deals from 40 mid-large size transactions (5,000 sq ft+) during the month.

The May figure represents a fall on the 800,000 sq ft sq ft of lettings in April, but the number of deals remains close to recent the monthly average.

May was characterised by six office deals over 20,000 sq ft, which included Hearst Publishing’s 71,000 sq ft deal at the LSQ Building in Leicester Square, WC2: WeWork took 70,000 sq ft at 1 Mark Square in London, EC2; Man Group taking 41,000 sq ft at 90 Upper Thames Street, London, EC4 and Petrochina taking 35,000 sq ft at the Adelphi Building in WC2.

Media topped the table of lettings by sector, underpinned by the Hearst Group deal, this was followed by business services bouyed by the serviced office sector and financial services with large deals involving Man Group and Hambro. Retail also performed well, helped by the lettings to Crabtree and Deliveroo. Office deals ‘under offer’ in central London rose to 3.6m sq ft and volumes are rising in nearly all sub-markets.

By area, the City accounted for 50pc of the office floorspace let in May at 300,000 sq ft – similar to the April level. The West End saw 90,000 sq ft of take-up. Midtown contributed 167,000 sq ft of lettings. Current London office demand is calculated to be around 3.2m 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 150,000 sq ft (25% of the monthly total), as transactions for new space paused from the recent strong showing.

Cityoffices and Metropolis are shortly to release its twice yearly Skyline report on the London office construction market. The summer 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