Central London office lettings in January 2018 reached a slightly downbeat 850,000 sq ft of deals from 46 mid-large size transactions (5,000 sq ft+) during the month. The January 2018 figure slightly underperforms the current monthly average of 1m sq ft .
January was characterised by 14 office deals over 20,000 sq ft, which included Google’s 127,000 sq ft re-letting at Building R7, Handyside Street, Kings Cross; Mimecast’s 78,000 sq ft letting at Finsbury Avenue, EC2 and Dell took 23,000 sq ft at Creechurch Place, EC3.
Media topped the table of lettings by sector, underpinned by Mimecast and Intuit deals. This was followed by IT services and business services mainly underpinned by serviced office operators. Office deals ‘under offer’ in central London rose slightly to 3.5m sq ft, but pending deal volumes are healthy in nearly all sub-markets, with some 40 deals pending.
By area, the City accounted for 34pc of the office floorspace let in January 2018 at 291,000 sq ft. The West End saw 228,000 sq ft of take-up. Midtown contributed 236,000 sq ft of lettings, plus 90,000 sq ft of Docklands deals. Current London office demand is calculated to be around 3.1m sq ft in the City and 2.8m sq ft in the West End.
The volume of grade A (newly built or refurbished office space) let during the month reached 433,000 sq ft (51% of the monthly total), as transactions for new space resumed their recent strong showing. Availability is dominated by secondhand space in all London markets.
Metropolis research is currently monitoring 635 ‘live’ London requirements, with deals for space of up to 1.8m sq ft due to sign in the next few months.
Cityoffices is working on its current ‘Skyline Survey’ in London. Further details of office scheme planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on the report and the Cityoffices database from Andy King at firstname.lastname@example.org.
Copyright Metropolis Property Research Ltd 2018