Central London office lettings in August 2017 reached an exceptional 1.57m sq ft of deals from 58 mid-large size transactions (5,000 sq ft+) during the month. The August figure exceeds the current monthly average of just under 1m sq ft .
August was characterised by 13 office deals over 20,000 sq ft, which included Deutsche Bank’s 470,000 sq ft pre-let at 21 Moorfields, EC2: WeWork’s two pre-lets at The Stage, EC2 and the nearby ‘Shoreditch Exchange’; Kings College London took 73,000 sq ft at Roman Wall House, EC3, at and Atos took 42,000 sq ft at Mid City Place, WC1.
Financial services topped the table of lettings by sector, underpinned by the Deutsche Bank deal. This was followed by business services with large deals involving WeWork. IT services also performed well, helped by the lettings to OpenText and Kobalt. Office deals ‘under offer’ in central London held steady at 3.5m sq ft and pending deal volumes are healthy in nearly all sub-markets.
By area, the City accounted for 68% of the office floorspace let in August at 1,066,000 sq ft. The West End saw 233,000 sq ft of take-up. Midtown contributed 145,000 sq ft of lettings. Current London office demand is calculated to be around 3.3m sq ft in the City and 2.9m sq ft in the West End.
The volume of grade A (newly built or refurbished office space) let during the month reached 1.2m sq ft (77% of the monthly total), as transactions for new space resumed their recent strong showing. Metropolis research is currently monitoring 600 London requirements, with deals for space of up to 2.5m sq ft due to sign in the next few months.
Cityoffices and Metropolis are working on an autumn 2017 update to their twice yearly London Skyline report. The update will contain details of new office schemes under construction, planning applications and consents, with scheme by scheme detail on the Cityoffices.net website. Details on Cityoffices from Andy King at firstname.lastname@example.org. Details on Metropolis from email@example.com.