WEST END OFFICE LEASING HAS STRONGEST FIRST QUARTER IN SIX YEARS
- Under offers up 6% on previous quarter
- West End sees highest Q1 take-up since 2012
- Largest Q1 deal saw SMBC acquire 161,200 sq ft at 100 Liverpool Street
- Banking and finance sector continues to actively seek space
The amount of office space under offer on in Central London at the end of Q1 2018 stood at 3.2m sq ft, representing an increase of 6% on the previous quarter and showing a 3% increase on the same point last year, according to CBRE, the world's leading real estate advisor.
Take-up in Central London reached 2.8m sq ft in Q1 2018, the West End witnessing its strongest start to the year since 2012, with its largest deal boasting a 65,900 sq ft letting to WS Atkins at Nova North in Victoria.
Availability in Central London increased by 7% to 14.3m sq ft but that is still below the total 12 months ago. A total of 1.1m sq ft of development and refurbishment space completed in Q1. A further 2.3m sq ft is expected to complete before the end of the year, of which 54% has already been committed to be leased.
By the end of the quarter, 9.1m sq ft was being actively sought by occupiers, primarily from the banking and finance sector (26%) and creative industries sector (24%).
In a noticeable trend, driven by a squeeze in supply, we are seeing continued demand for larger units, with eight transactions over 50,000 sq ft completing in Q1. London take-up is slightly behind trend albeit steady, however, there is renewed buoyancy in the West End market and we are seeing continued demand from occupiers in London’s highest quality buildings, a trend we expect to continue to see across all sectors.