New figures show
London’s West End witnessed record breaking levels of under offers for office accommodation in May, according to data from CBRE. The global real estate advisors’ latest Central London office MarketView further demonstrates an increase in under offers across Central London by 6%, to stand at 3.8 m sq ft, which is 37% above the 10-year average. This is the third month in a row under offers have increased in London, highlighting continued investor confidence, and steady levels of demand in the occupier market.
A 24% monthly increase in West End under offers was the primary cause of the increase. At the end of May, West End under offers stood at 1.4m sq ft, the highest level on record. There were 23 units across Central London with more than 20,000 sq ft under offer at the end of May, nine of which were over 50,000 sq ft and including the largest space being 550,000 sq ft at 21 Moorfields and the 280,000 sq ft subsequently signed this month at 2 Southbank Place to WeWork.
Take-up in May saw a monthly rise of 8%. The largest transaction of the month was Nex Group’s acquisition of 115,700 sq ft at the London Fruit & Wool Exchange, followed by Hearst Magazine’s 70,100 sq ft letting at LSQ. Availability fell for the third consecutive month, decreasing by 2% to stand at 14.3m sq ft, below the 10-year average of 14.8m sq ft.
Emma Crawford, head of London leasing at CBRE, said:
“There is a healthy demand for office space in London, although mostly lease event driven, which may translate to higher levels of take-up towards the second half of 2017.
“The pattern of occupier sectors under offer is also balanced giving underlying strength to the market, and reaffirms that Londonremains top of mind for many occupiers looking to expand.”