Central London Lettings – August 2017

Central London office lettings in August 2017 reached an exceptional 1.57m sq ft of deals from 58 mid-large size transactions (5,000 sq ft+) during the month. The August figure exceeds the current monthly average of just under 1m sq ft .

August was characterised by 13 office deals over 20,000 sq ft, which included Deutsche Bank’s 470,000 sq ft pre-let at 21 Moorfields, EC2: WeWork’s two pre-lets at The Stage, EC2 and the nearby ‘Shoreditch Exchange’; Kings College London took 73,000 sq ft at Roman Wall House, EC3, and Atos took 42,000 sq ft at Mid City Place, WC1.

Financial services topped the table of lettings by sector, underpinned by the Deutsche Bank deal. This was followed by business services with large deals involvingWeWork. IT services also performed well, helped by the lettings to OpenText and Kobalt. Office deals ‘under offer’ in central London held steady at 3.5m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 68pc of the office floorspace let in August at 1,066,000 sq ft. The West End saw 233,000 sq ft of take-up. Midtown contributed 145,000 sq ft of lettings. Current London office demand is calculated to be around 3.3m 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 1.2m sq ft (77% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 600 London requirements, with deals for space of up to 2.5m sq ft due to sign in the next few months.

Cityoffices and Metropolis are working on an autumn 2017 update to their twice yearly London Skyline report. The update will contain details of dozens of new office schemes under construction, planning applications and consents, with scheme by scheme detail on the Cityoffices.net website. Details on Cityoffices from Andy King at andy@metroinfo.co.uk

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Central London Lettings – July 2017

Central London office lettings in July 2017 sustained a healthy 820,000 sq ft of deals from 48 mid-large size transactions (5,000 sq ft+) during the month. The July figure is close to the current monthly average of just under 1m sq ft .

July was characterised by 14 office deals over 20,000 sq ft, which included Spotify’s 104,000 sq ft deal at the Adelphi Building, WC2: law firm Withers pre-let 60,000 sq ft at 20 Old Bailey, EC4; Yahoo/AOL took 43,000 sq ft at Mid City Place, WC1 and HSBC pre-let 36,000 sq ft at 7 Cork Street in W1.

IT and tech services topped the table of lettings by sector, underpinned by the Spotify and Yahoo deals. This was followed by professional services with large deals involving Withers and Bazalgette Tunnel. Financial services also performed well, helped by the lettings to HSBC and Redington. Office deals ‘under offer’ in central London held steady at 3.4m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 31pc of the office floorspace let in July at 250,000 sq ft. The West End saw 177,000 sq ft of take-up. Midtown contributed 300,000 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 480,000 sq ft (58% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 600 London requirements, with deals for space of up to 3m sq ft due to sign in the next few months.

Cityoffices and Metropolis have just released releasing their 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