Central London Office Lettings April 2015

Central London office lettings registered a healthy 1m sq ft sq ft of transactions in April 2015, spread across 47 deals during the month.

The month was characterised by 11 deals over 20,000 sq ft, including Transport for London at the Stratford Quarter; Kings College London at Bush House, WC2: BRIT Insurance at the Leadenhall Building, EC3 and Facebook in Euston Road, NW1. Other large lettings included deals to Microsoft, Office Group and London Metal Exchange.

Transport and financial sectors topped the table of lettings by sector, helped by the TfL and London Metal Exchange deals, followed by computer/IT and business services. Serviced office operators continue to be very active in central London. Under offers by negotiating tenants are thought to be around 3m sq ft., with the largest as DLA Piper in the City.

By area, the City accounted for over half the deals (32) and 68pc of the floorspace let in the month, while Docklands saw nearly 270,000 sq ft let in just two deals. Office demand is calculated to be around 5m sq ft in the City and 2.5m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month increased to over 500,000 sq ft as transactions for newly developed or refurbished space rose again.

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

Advertisements

Central London Lettings Jan-Feb 2015

Central London office lettings dropped in the first two months of 2015 to just under 990,000 sq ft in 60 deals in January and February 2015.

The months were was characterised by a shortage of large deals, with only the 60,000 sq ft letting to Hewlett Packard at 1 Aldermanbury Square, EC2 and 167,000 sq ft to WeWork at More Place, EC2, the only ones over 50,000 sq ft. Other large lettings included deals to Investec, Aimia and the Royal College of Pathologists

Business Services and the computer and IT sectors topped the table of lettings by sector, helped by the WeWork and HP deals, followed by financial services and transport. The media and law sectors looks likely to provided some momentum in the months ahead.

By area, the City accounted for over half the deals and 62pc of the floorspace let in the months, while Midtown saw 10 deals totaling 120,000 sq ft including a major deal to Aimia.

The volume of grade A (newly built or refurbished office space) let during the month dipped to under 300,000 sq ft as transactions for newly developed or refurbished space slowed during the period. However there are a number of large lettings in the pipeline at ‘under offer’ stage.

Metropolis is preparing a report on current office deals under offer in London based on its extensive database.

Metropolis Office Requirements – Q3 2014

9.5m sq ft of demand

Our team here at Metropolis researched over 370 UK company office requirements in Q3 2014, representing 9.5m sq ft of office demand.

6m sq ft of this demand was for space in Greater London and 4.9m sq ft was demand for space in central London.

Demand for City of London space continued to be strong during Q3, with 2.4m sq ft required in over 60 planned relocations. Three of the top five largest requirements in the City were searches by technology and media companies. EC2 demand made up 37.5% of the total space required.

1.4m sq ft of demand was identified in the West End of London, split equally between requirements for space in London SW1 and W1. Again three of the top five largest requirements were searches by technology and media companies, with two significant searches by financial service sector companies identified.

Mid Town office demand was largely focused on London WC2, with 100,000 sq ft of the 300,000 sq ft required in this postcode attributed to media sector requirements.

Just over 0.6m sq ft of demand was researched in London’s Southbank, 200,000 sq ft of which was triggered by an energy company’s requirement for additional space in the area.

graph1

 

 

 

 

 

 

 

Similar to H1 results, the Banking & Finance sector is leading the demand for new UK offices, with 1.4m sq ft of requirements in the UK, just over 0.4m sq ft of which is sought in the City of London.

Requirements from media sector companies represented just over 1m sq ft of demand, a 300,000 sq ft requirement in London W1 significantly boosting this figure. Technology & Telecom sector requirements came a close third with 0.9m sq ft of demand. The law sector accounted for 0.8m sq ft of demand and the insurance sector 0.5m sq ft.

 

graph2

 

 

 

 

 

 

Simon Sluszny October 2014

Copyright Metropolis Property Research Ltd

London Lettings On The Rise

Central London office lettings in June 2014 reached 1,150,000 sq ft in 70 medium or large deals, as the market saw another above the long term average month for office transactions.

The quarterly total was 3.4m sq ft and the first half of the year totalled 6.5m sq ft. June was characterised by large lettings to China Construction Bank and Clarksons amongst others. Financial and media sectors were strong performers. By area, the City accounted for less than 500,000 sq ft of the June deals total, however Midtown and Southbank were strong contributors. However across the quarter the EC2 area was the strongest postcode.

The strength of the Central London office market in the first half of the year is likely to translate into a full year lettings total of around 13m sq ft. There were eleven transactions over 50,000 sq ft in the quarter including  Mizuho Corporate Bank and Estee Lauder. The City accounted for 1.4m sq ft of lettings in Q2 2014 and during the last three months as a whole there were 1.9m sq ft of grade A lettings. There are a number of large lettings in the pipeline with upto 3m sq ft of space under offer. The largest space under offer is 370,000 sq ft at Bankside, SE1 to media group Omnicom.

There are currently 7-8m sq ft of active London requirements on the Metropolis database and a further 2-3m sq ft of potential requirements in the pipeline. The insurance sector is tipped as one of the most active likely to sign deals in the second half of 2014.