Midtown registers lowest Q3 office take-up for three years

Take-up in London’s Midtown market is at its lowest level for three years, according to Farebrother. Just 398,717 sq ft of deals were done in Q3, with a dearth of prime, best-in-class space keeping take-up figures depressed. This compares with 537,263 sq ft in the third quarter last year and 414,884 sq ft in 2022.  However, the agent said there were more than 1m sq ft of deals under offer, which should see the submarket making a strong end to 2024. Professional services, tech and legal sectors were the most active during Q3, although the standout deal of the quarter was a lease for 31,582 sq ft, taken by co-working operator Work Life at 6-7 St Cross Street, EC1. New or refurbished space was most popular in Q3, accounting for 50% of all deals, followed by second-hand grade-A space at 48%. Second-hand grade-B space represented just 2% of deals. Availability has started to tick up, rising by 6% on Q2 to 3.3m sq ft, and is expected to rise again before the end of the year as some 1m sq ft of fresh development is completed. This year will represent a peak in office completions, with the pipeline slowing significantly in 2025 and 2026, with a respective 472,342 sq ft and 631,000 sq ft set to complete. Investment in Midtown during Q3 was muted, with eight deals completing for a total of £107.9m. This was down by 52% on Q2. Despite the reduced figures, Farebrother said the investment market continued to see an uptick in interest, with the market at least feeling busier, even if completed deals remain low. View more data on the Midtown office market >> Image © Global Warming Images/Shutterstock