London’s West End witnessed record-breaking levels of under offers for office accommodation in May, according to new data from CBRE.
The global real estate advisors’ latest Central London office MarketView further demonstrates an increase in under offers across Central London by 6%, reaching 3.8 million ft2, 37% above the 10-year average.
'There is a healthy demand for office space in London, although mostly lease event driven, which may translate to higher levels of take-up towards the second half of 2017,' commented Emma Crawford, head of CBRE's London leasing.
'The pattern of occupier sectors under offer is also balanced giving underlying strength to the market, and reaffirms that London remains top of mind for many occupiers looking to expand,' Crawford added.
According to the data, this is the third month in a row under offers have increased in London, suggesting continued investor confidence and steady demand in the occupier market.
A 24% monthly increase in West End under offers was the primary cause of the increase. At the end of May, West End under offers stood at 1.4 million ft2, the highest level on record. There were 23 units across Central London with more than 20,000 ft2 under offer at the end of May, nine of which were over 50,000 ft2 and included 550,000 ft2 at 21 Moorfields, the largest space recorded.
Take-up in May saw a monthly rise of 8%. The largest transaction of the month was Nex Group’s acquisition of 115,700 ft2 at the London Fruit & Wool Exchange (pictured), followed by Hearst Magazine’s 70,100 ft2 letting at LSQ.
Availability fell for the third consecutive month, decreasing by 2% to stand at 14.3 million ft2, below the 10-year average of 14.8 million ft2.
