City of London Boost

An October 2016 City of London office market survey by property adviser Ingleby Trice recorded 39,183 sq m (421,760 sq ft) of take-up in the core area: “a healthy rise of 35% over September and a material 76% rise over the 6 monthly average of 22,233 sq m (239,311 sq ft)”

The surveyor says say that October’s City take up was the highest since April and the highest since the June referendum. October’s take up was also this year’s second highest at just over twice the total in October 2015 and includes:

  • 8 Finsbury Circus, EC2 – 17,460 sq ft on 7th floor – placed under offer to an incoming tenant (see Metropolis database for further details).
  • River Building, Cannon Bridge, EC4 – 51,500 sq ft at Riverside 1 – placed under offer to Deliveroo who is moving from the West End. The refurbishment is due to complete in Q1 2017.
  • Cannon Place, 78 Cannon Street, EC4 – 83,937 sq ft on pt 7th & 6th floors to an as yet undisclosed occupier.
  • 99 Gresham Street, EC2 – 17,250 sq. ft on G & 1st floors – placed under offer to a, so far, mystery tenant.
  • The Scalpel, 52 Lime Street, EC3 – 46,983 sq ft on 2nd to 4th floors – placed under offer to an insurance tenant (see Metropolis for further details). The scheme is a new Grade A office tower development due to complete in Q4 2017;
  • 15 Bishopsgate, EC2 – 62,884 sq ft in the entire building – placed under offer. The office development due to complete in June 2017.

October’s City of London fringe take up of 43,194 sq m (464,940 sq ft) represents a significant 31% rise over September and was this year’s highest . Deals included:

  • C Space, 37-45 City Road, EC1 – 15,391 sq. ft on pt 3rd & 4th floors to NeuLion;
  • White Collar Factory, 100 City Road, EC1 – 25,360 sq ft on 14th & 15th floors – placed under offer to an incoming tenant (see Metropolis for further details);
  • 1&2 Paris Gardens, SE1 – 62,425 sq ft on LG, G & 1st to 4th floors under offer to a serviced office tenant;
  • The Blue Fin Building, 110 Southwark Street, SE1 – 65,000 sq ft on 6th & pt 7th floors placed under offer to a banking tenant (see Metropolis for further details);
  • Southbank Central, Vivo, Stamford Street, SE1 – 72,080 sq. ft on 1st to 3rd floors – placed under offer to an incoming tenant (see Metropolis for further details).

Details of these deals and many other impending London moves are to be found on http://www.metroinfo.co.uk

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Central London Office Lettings – October 2016

Central London office lettings in October 2016 recorded over 900,000 sq ft of deals from 26 mid-large size transactions (5,000 sq ft+) during the month.

The October figure represents a rise of 26% from the 720,000 sq ft total in September and a rise in the number of deals over the month. However, much of the October total can be attributed to Apple’s 500,000 sq ft pre-let at Battersea Power Station and remainder of the month was disappointing and would have been the lowest monthly take-up figure since April 2012 .

October was characterised by 9 office deals over 20,000 sq ft, apart from Apple at Battersea; London Borough of Westminster took 57,000 sq ft at 5 Strand, WC2; Deliveroo took 51,000 sq ft at Cannon Bridge House, EC4 and The Economist took 25,000 sq ft at The Adelphi, WC2.

Computer services topped the table of lettings by sector, underpinned by the Apple deal, followed by media sector, boosted by deals to The Economist and Spark44. Public sector also performed well. Office deals under offer in central London edged up to around 3m sq ft and include two large pending deals in the City and one in Southbank. Enquiry levels are up slightly.

By area, the City accounted for only 18pc of the office floorspace let in October. The West End saw 100,000 sq ft of take-up. Midtown contributed 90,000 sq ft of transactions, but Southbank was predominant. Current London office demand is calculated to be around 4.5m sq ft in the City and 3.5m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 613,000 sq ft (65% of the total), as transactions for new space kept momentum.

New research currently being prepared by Metropolis and Cityoffices for a major report on London office construction, reveals that over 14m sq ft of offices are now underway in central London.