ANALYSIS: LONDON OFFICES MARKET ANALYSIS
LONDON BOUNCES BACK
Normality returns to the market following the EU referendum vote
and a shock snap General Election
Karl Tomusk – EG Data reporter
With the Cheesegrater, EC3, sold in the City’s second biggest investment deal, Brexit negotiations becoming a normal fact of life and the snap election safely behind us, London has resuscitated its leasing market and kick-started its activity.
Take-up rebounded to just above 3m sq ft, up by 50% on Q2 last year and up by 20% on Q1 this year. Although the bar was set low, considering the sluggish lead up to the EU referendum last year, take-up in Q2 was within 2% of the five-year average, according to EG’s London Office Market Analysis. A semblance of normality has returned. There were only three major deals of more than 100,000 sq ft – just as there were in Q1
– as the market continued to rely on the sheer volume of smaller deals. However, availability rates continued to rise on average, from 6.97% to 7.17%, with average rents falling as a result. In Mayfair/St James, rents were down by 7.9% year-on-year, to £113 per sq ft, and in Victoria there was a 4.9% fall to £76 per sq ft. If parts of London are slowing despite rising activity, who is spurring on the market – and why are occupiers choosing to stay in the capital?
WHO IS LONDON’S TOP OFFICE AGENT?
|AGENCY||DISPOSED (sq ft)|
|1.||Cushman & Wakefield||1,418,629|
|7.||GM Real Estate||180,790|
|9.||Strutt & Parker||122,297|
|13.||BNP Paribas Real Estate||73,890|
|15.||Union Street Partners||65,183|
|16.||Monmouth Dean LLP||61,860|
|18.||Edward Charles & Partners||57,190|
|19.||James Andrew International Limited||44,382|
Source Article: EG 29 JULY 2017