London Office Lettings in May 2018

Central London office lettings in May 2018 reached over 1.3m sq ft from 45 mid-large size office transactions (5,000 sq ft+) during the month. The May 2018 figure is above the current monthly London average of 1m sq ft.

May was characterised by 14 office deals over 20,000 sq ft, which were led by the Chinesse Embassy’s deal to take Royal Mint in EC3; The Office Group’s 83,000 sq ft letting at One Canada Square, E14 and Epiris Advisers’ 59,000 sq ft at The Forum in Gutter Lane, EC2.

Public Services topped the table of lettings by sector, underpinned by Chinese Embassy deal. This was followed by business services led by a number of lettings by serviced office operators. Financial services, technology and media were also well represented. Office deals ‘under offer’ in central London increased to 3.4m sq ft, and pending deal volumes are healthy in nearly all sub-markets, with a large number of deals pending.

By area, the City accounted for 70pc of the office floorspace let in April 2018 at 912,,000 sq ft. The West End saw 209,000 sq ft of take-up. Midtown contributed 57,000 sq ft of lettings, plus 83,000 sq ft of Docklands deals. Current London office demand is calculated to be around 3.2m sq ft in the City and 2.6m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 1m sq ft sq ft (77% 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 640 ‘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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Metropolis Leads in May 2018

Metropolis ran 557 business leads on ‘office movers’ in May 2018. If all reported moves were added together the total would exceed 17 million sq ft of office searches and transactions, researched by Metropolis’ unique market led intelligence research team. London was the largest region with 245 business leads during month, but there were also strong showings from the South East (71),  North West (45), Yorkshire (39) and Scotland (37) . Business services and financials services were the largest business sectors planning relocations or agreeing moves during the month.

The relocation leads covered the whole UK and provided details of the size of the office occupier, company likely move dates, a description of the reasons for the move, its business sector and full contact details including an address for written inquiries, at least one telephone number and in most cases an email address. Some of the largest planned moves and top picks amongst the 557 May leads, included those on occupiers Chinese embassy, Barclays Bank, Telehouse, Societe Generale and Publicis.

The May 2018 leads included 154 ‘identified requirements’, including 83 in London. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 154 searches, 110 were newly posted office searches, not previously notified to clients.

The most recent research also included 166 ‘potential movers’ which were mainly longer-term leads on occupiers, considering a relocation, but the occupier has yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have just signed for new office space and have set a move date, including some large pre-lets and companies inviting tenders for fit-out contracts. The shortest planned move date is just over a month away, whilst the longest was late 2020.

Recent research by Metropolis concluded that a conservative estimate of ‘live’ business tender opportunities on the database in recent months, exceeded £1bn of business.

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