December 2014 London Take-Up

Central London office lettings in December 2014 reached a strong 1.3m sq ft in 82 medium or large deals, representing a further boost to the monthly average for 2014

December was characterised by larger than average number of deals, including large lettings to Google, NeueHaus and WeWork amongst others.

The computer and IT sector topped the table of lettings by sector, helped by the Google deal. Business services also saw strong performance in December and a feature of central London take-up in 2014 has been the voracious demand from the serviced office sector for space.

By area, the City accounted for half the deals but only 41pc of the floorspace let in the month, while Southbank saw 12 deals totaling 221,000 sq ft including a major deal to ED&F Man.

The volume of grade A (newly built or refurbished office space) let during the month grew to 670,000 sq ft as transactions for newly developed or refurbished space took over half the space let in the month.

Metropolis is preparing a major report on current office demand in London based on its extensive database.

Property consultant CBRE estimates that London office take-up in 2014 has outpaced every yearly total since 2006. It confirms that media and IT sectors took 30% of office demand during the year, just ahead of financial services at 25%. It also confirms Cityoffices research that suggests that Southbank is the fastest growing London office district at the moment in terms of new deals being signed.

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