London office take-up soars despite Brexit clouds
The London office market has defied Brexit with multiple big lettings pushing total take-up to 9.2m sq ft so far this year, up 9% on average levels.
In the third quarter, central London office take-up reached 3.4m sq ft, including six deals that were larger than 100,000 sq ft; a number not surpassed since 2010, according to Cushman & Wakefield.
So far this year, the number of deals in excess of 100,000 sq ft amounts to 12, above the long-term annual average.
The London office market has defied Brexit with multiple big lettings pushing total take-up to 9.2m sq ft so far this year, up 9% on average levels.
In the third quarter, central London office take-up reached 3.4m sq ft, including six deals that were larger than 100,000 sq ft; a number not surpassed since 2010, according to Cushman & Wakefield.
So far this year, the number of deals in excess of 100,000 sq ft amounts to 12, above the long-term annual average.
Media and tech occupiers continue to target London, accounting for 28% of take up this year in central London.
Key deals in Q3 include Facebook’s agreement to take 600,000 sq ft across three buildings in King’s Cross Central, N1; Publicis taking 212,000 sq ft at White City Place, W12; and the V&A taking 145,000 sq ft at Here East in Stratford, E20.
Patrick Scanlon, head of UK offices insight at Cushman & Wakefield, said: “Major businesses have continued to commit their future to London, despite Brexit uncertainty.
“So far this year we have witnessed almost as many 100,000 sq ft deals than in the whole of 2007; the peak of the last cycle.”
In 2007 there were 13 deals in excess of 100,000 sq ft in central London,
Falling vacancy rates amid a lack of supply has also supported demand. There is now just 12.6m sq ft available to lease, reflecting a vacancy rate of 4.7%.
Prime headline rents in both the City and West End have remained stable at £67.50 per sq ft and £110 per sq ft respectively.
More than two-thirds (62%) of central London take-up in 2018 has been in new Grade A space, underlining the increased occupier demand for top-quality offices.
Richard Howard, head of London leasing at Cushman & Wakefield, said: “The London office market is in rude health as we enter the final quarter of the year with plenty of ‘in principle’ deals scheduled to complete.
“Demand remains high and landlords and occupiers are really embracing the range of leasing models that are now available in our market.”
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