Central London office take-up continues apace as serviced office providers snap up space

07 June 2017

Office take up has now reached 3.21 million sq ft (298,555 sq m) in central London this year, according to international real estate advisor Savills.

April saw 468,263 sq ft (43,502 sq m) of offices taken in the City across 29 transactions, 83% of which was of a grade A standard, and 205,249 sq ft (19,068 sq m) across 35 transactions in the West End. Take up in the year to the end of April in the West End now stands at 9% above the 10-year average, while in the City it is up 20% on the same measure.

Average grade A rents are now £60.50 per sq ft in the City and £86 in the West End says Savills.

Among occupiers the serviced office sector continue to account for a significant share of take up, says Savills. Although these occupiers have taken less space across central London than tech, media and financial and professional services companies, their share of the market continues to grow. In the City service office providers account for 9% of take up in 2017 to date, over double the sector’s 10-year average market share of 4%. In the West End they account for 8% - above the 10-year average of 4%.

Philip Pearce, head of the Central London leasing team at Savills, comments: “Take up across London’s City and West End markets remains steady and well above the average levels we’ve seen at this point of the year over the past decade. We expect serviced office providers to continue to be highly active across central London: we’re aware that 115,555 sq ft is currently under offer to several operators in the West End alone. These companies continue to actively pursue expansion opportunities in the capital, and are likely to do so for the foreseeable future given the growing popularity of the spaces they provide among both start ups and corporate occupiers.”

 
 

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Philip Pearce

Philip Pearce

Executive Director
Central London

Savills Finsbury Circus House

+44 (0) 20 7409 8917

 

Ben Raywood

Ben Raywood

Associate
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8791