OFFICE UNDER OFFERS UP 76% IN LONDON
- The largest unit under offer was 159,200 sq ft at 5 Merchants Square
- The City saw the highest proportion of under offers accounting for 38%
- Under offers were above-trend in all Central London markets in February
- Take-up saw a 20% increase in February 2018 taking it to 0.6m sq ft
Under offers rose in February, increasing by 3% to stand at 3.7m sq ft, remaining significantly ahead of the 10-year average of 2.8m sq ft. This represents a year-on-year increase of 76% according to CBRE, the world's leading real estate advisor. There were 48 units across Central London with more than 20,000 sq ft under offer at the end of February, of which 15 were over 50,000 sq ft.
Take-up saw a 20% increase in February 2018 to 0.6m sq ft. The largest transaction of the month saw SMBC acquire 161,200 sq ft at 100 Liverpool Street, EC2. Take-up saw month-on-month increases in the City, West End and Docklands. Led by the SMBC deal, the banking and finance sector represented the largest proportion of take-up in February at 40%, followed by the creative industries (23%) and the consumer services and leisure sector (14%). Over the last 12 months, the business services sector has accounted for the largest proportion of take-up in Central London at 33%, driven primarily by the boom in flexible office take-up.
Demand for office space in the City remains robust. The level of under offers in the City reached 1.4m sq ft in February, accounting for 38% of the Central London total. We are seeing strong demand from a wide variety of occupier types spread across a diverse range of locations right across Central London. This should support leasing activity as we head into Spring.