Central London office space bounces back
The amount of Central London office space leased by businesses recovered from a previous dip to reach 980,400 sq ft in July.
This is 24% above the level seen in June and the strongest monthly average since March, according to CBRE.
July’s office take-up in Central London remained below the 10-year average of 1.1 million sq ft per month, but leasing activity in the City and on the Southbank suggests businesses still see London as an attractive place to locate.
Emma Crawford, head of London leasing at CBRE, said: “Much has been said about the health of the London office market this year, but clearly demand for office space remains buoyant. Businesses are still confident about London’s significant advantages as a global business centre, even when the UK is outside the EU. This continued demand, mostly driven by key lease events, in a market with low supply, is maintaining headline rents at the same rate as in May and June.
“Of course the jump in leasing activity is good news for the market, and whilst this is not universal across all sub-sectors of the London market, even with heightened economic and political uncertainty, longer term prospects remain promising.”
Available office space increased by 2% over the month to stand at 13.6 million sq ft, but remained 7% below the 10-year average.
Development remains strong, however 46% of the 5.1 million sq ft of space expected to be completed before the end of the year is already committed to occupiers.
Office space under offer fell by 14% over the course of the month to stand at 3 million sq ft as a number of large deals completed.