Central London office take-up sees strong end of year rebound : CBRE
Central London office take-up in November 2016 rose to 1m sq ft, representing a monthly increase of 118% and bringing take-up in line with the 10-year monthly average, according to the latest figures from global real estate advisor CBRE.
Take-up in November 2016 was boosted by a number of large deals. A total of six deals of over 50,000 sq ft transacted during the month, more than any other month so far this year. The largest deal of the month saw Fidelity acquire 105,800 sq ft at 4 Cannon Street, EC4.
The business services sector represented the largest proportion of take-up in November at 27% followed by the banking and finance sector (16%). Over the last 12 months, the creative industries sector has represented the largest proportion of take-up in Central London at 26%.
Availability in Central London increased by 4% in November 2016 to stand at 14.2m sq ft representing a year-on-year increase of 29%. Despite the increase, availability remained below the 10-year average of 14.6m sq ft. The increase in availability was reflected in the Central London vacancy rate which rose to 4.3% from 3.8%. The largest available unit in Central London at the end of November was Creechurch Place, EC3,where 271,600 sq ft of newly completed space was available.
Due to the completion of a number of large deals, under offers fell by 12% over the course of the month to stand at 2.9m sq ft. Despite the fall, under offers in Central London remained 4% above the 10-year average of 2.8m sq ft. There were two units of over 100,000 sq ft at the end of November. The UK Government were under offer on 536,400 sq ft at 10 The South Colonnade in Canary Wharf in a deal which has completed since the end of the month and a confidential media occupier were under offer on 185,600 sq ft at Bracken House, EC4.
“Renewed leasing activity in the Autumn was buoyed by sentiment that the London economy is robust in the wake of the referendum, translating into more space being taken in November. The market was also boosted by mergers in the legal and insurance sectors, creating new space requirements.” Chris Vydra, Head of City Office Leasing at CBRE.