The momentum seen in the Central London office leasing market in 2013 has continued in the first three months of 2014, according to figures released by Cushman & Wakefield (C&W).
The momentum seen in the Central London office leasing market in 2013 has continued in the first three months of 2014, according to figures released by Cushman & Wakefield (C&W).
Take-up in Canary Wharf & Docklands in the first three months of 2014 is already 85% of the 2013 total. Take-up of office space in Central London stood at 2.4 million sq ft (223,000 m2) for the first three months of 2014. This is broadly similar to last year but the real story is in the volume of space under offer: completed transactions plus space under offer is approximately 30% higher than at the end of Q1 2013.
C&W estimates that there is around 3.2 million sq ft under offer, which is the highest volume since Q2 2007 and virtually double the five-year quarterly average.
Space under offer has increased across all Central London markets and suggests strong levels of leasing activity throughout the rest of the year in all areas. Four potential deals over 100,000 sq ft are currently under offer: Transport for London (TfL) has placed 230,000 sq ft under offer at 10 Upper Bank Street, E14; Mizuho is under offer at 2 New Ludgate, EC4 (193,000 sq ft); Havas is under offer at 3 Pancras Square, N1 (160,000 sq ft) and Estée Lauder is under offer at 1 Fitzroy Place,W1 (140,000 sq ft).
There are also a number of large active requirements in the market from traditional business sectors that are close to going under offer, including FCA, Société Générale, Rabobank, DLA Piper and others, which will also support future leasing volumes.
At the same time there is a shortage of available space, Andy Tyler, C&W’s head of West End office agency, said: 'The low supply environment that occupiers now face will force them to take earlier decisions. Pre-letting will become the obvious route to secure suitable space for those needing to move in the next 12 to 24 months.'