Central London office lettings in November 2017

Central London office lettings in November 2017 reached a healthy 1m sq ft of deals from 40 mid-large size transactions (5,000 sq ft+) during the month. The November figure matches the current monthly average of 1m sq ft .

October was characterised by 17 office deals over 20,000 sq ft, which included Lloyd Bank’s 117,000 sq ft letting at 125 London Wall, EC2, Hyperion’s 115,000 sq ft letting at Creechurch Place, EC3; WeWork took 90,000 sq ft at 131 Finsbury Pavement, EC2 and GAM took 42,000 sq ft at 8 Finsbury Circus, EC2.

Business Services topped the table of lettings by sector, underpinned byWeWork deals. This was followed by financial services with the large deals involving Lloyds Bank, GAM and Blue Crest.  Insurance and Media also performed well, helped by the lettings to Hyperion and Moonpig. Office deals ‘under offer’ in central London fell slightly to 3.4m sq ft and pending deal volumes are healthy in nearly all sub-markets.

By area, the City accounted for 57pc of the office floorspace let in November at 563,000 sq ft. The West End saw 235,000 sq ft of take-up, underpinned by WeWork. Midtown contributed 132,000 sq ft of lettings, although there were no significant Docklands deals. Current London office demand is calculated to be around 3.1m sq ft in the City and 2.8m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 661,000 sq ft (66% of the monthly total), as transactions for new space resumed their recent strong showing.

Metropolis research is currently monitoring 635 ‘live’ London requirements, with deals for space of up to 1.9m sq ft due to sign in the next few months.

Cityoffices and Metropolis  has produced its latest London Skyline report for Q4 2017. The report contains details of new office schemes under construction, demolitions underway and projections for future construction. Further details of 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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Central London Lettings March 2017

Central London office lettings in March 2017 recorded nearly 1.05m sq ft of deals from 64 mid-large size transactions (5,000 sq ft+) during the month.

The March’s figure represents a rise on the 905,000 sq ft of lettings in February, and brings the Q1 2017 total upto nearly 2.6m sq ft of market activity, close to the recent average.

March was characterised by 13 office deals over 20,000 sq ft, which included Cancer Research’s 100,000 sq ft pre-let in Stratford: the Amazon’s 89,000 expansion at Principal Place in London, E1; ITV taking 88,000 sq ft at Waterhouse Square, WC1 and HSBC taking 31,000 sq ft at 71 Queen Victoria Street, EC4.

Tech and IT services topped the table of lettings by sector, underpinned by the Amazon deal, this was followed by charity headed by the Cancer Research transaction and media with large deals involving ITV and Buzzfeed. Business services also performed well helped by the lettings to Instant Offices and The Space. Office deals under offer in central London remain at 2.1m sq ft.

By area, the City accounted for an improved 40pc of the office floorspace let in March – a doubling of the February level. The West End saw 220,000 sq ft of take-up. Midtown contributed 140,000 sq ft of lettings. Current London office demand is calculated to be around 3.5m sq ft in the City and 3.2m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 243,000 sq ft (23% of the monthly total), as transactions for new space maintained their recent strong showing.

Cityoffices and Metropolis are shortly to release its twice yearly Skyline report on the London office construction market. The Q1 report features details 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

Central London Office Deals July 2015

Central London office lettings registered nearly 1.1m sq ft sq ft of transactions in July 2015, spread across 41 deals during the month.

The month was characterised by 13 deals over 20,000 sq ft, including Ashurst the law firm pre-letting at Fruit & Wool Exchange, E1; Kings College at three buildings in Aldwych Quarter, WC2; NESTA’s pre-let at 58 Victoria Embankment, EC4: Office Group at the White Collar Factory in EC1 and Balfour Beatty at 5 Churchill Place, E14.

Professional sectors topped the table of lettings by sector, helped by the Ashurst deal, followed by Education and business services. Under offers are steady at 4.2m sq ft, of which a substantial proportion is in the City of London.

By area, the City accounted for a little under half the deals (15) and 46pc of the floorspace let in the month. Office demand is calculated to be around 5.9m sq ft in the City and 2.8m sq ft in the West End. Availability fell to 10m sq ft, but a number of new schemes are poised to come on line.

The volume of grade A (newly built or refurbished office space) let during the month reached 800,000 sq ft (nearly 80% of the total), as transactions for newly developed or refurbished space again predominated.

Metropolis is about to publish a new report on statistics on the near 900 new requirements added to the database in the first half of 2015.