LONDON OFFICE TAKE-UP DRIVEN BY PRE-LETS IN JULY
Take-up of London office space in July 2017 was 1.3 m sq ft, 26% above the 10-year monthly average, according to figures released today from Global real estate advisor CBRE.
The largest transaction of the month was at 21 Moorfields, where 549,900 sq ft was pre-let off plan. Availability fell from last month, decreasing by 1%, to stand at 14.0m sq ft, below the 10-year average of 14.7m sq ft.
The banking and finance sector represented the largest proportion of take-up in July at 58%, followed by the consumer services & leisure (16%) and creative industries sectors (12%). Over the last 12 months, take-up has been dominated by the creative industries and the businesses services sector, both at 24% of take-up.
Under offers fell by 3% in July but still remained at a high level. Ending the quarter at 3.4m sq ft, under offers were 22% above the 10-year average of 2.8m sq ft. The largest unit under offer at the end of July was 1 Triton Square, NW1 where 310,000 sq ft is under offer to Dentsu. The largest under offer in the City was 125,400 sq ft at 125 London Wall, EC2.
A total of 2.7m sq ft of development and refurbishment space has completed so far in 2017. A further 3.8m sq ft is expected to complete before the end of the year, 63% (2.4 m sq ft) of which is already committed.
It is encouraging to see such high levels of leasing activity in what is traditionally a quiet summer month. Amongst continuing Brexit uncertainty and in a change from the last 12 months where leasing activity has been driven by creative industries and businesses services, it is reassuring to see the banking and finance sector representing the largest proportion of take-up in July.