West End sees highest consecutive monthly take-up in 17 years

31 August 2017

London’s West End office market has seen take-up of over half a million square feet for two consecutive months for the first time since April 2000, says international real estate advisor Savills. Take up reached 513,691 sq ft (47,722 sq m) in July 2017, which followed June’s take-up of 760,026 sq ft (70,606 sq m) according to the firm.

Savills reports 43 deals transacted in July, taking the West End office take-up for the year-to-date to 2.9 million sq ft (269,410 sq m), 33 % above the same point in 2016 and 37% above the long term average. Smaller deals have dominated the market this year with 76% of transactions below 10,000 sq ft (929 sq m), according to Savills research, with just 1% of transactions over 100,000 sq ft (9,290 sq m), however these large deals have accounted for 23% of take-up so far in 2017.

Hunter Booth, joint head of the West End agency team at Savills, comments: “Tenant demand is largely focused on smaller spaces, but the sheer number of deals at this end of the spectrum, coupled with some large requirements, has meant the West End has had two superb months, helping take-up for the year to date to climb to well above the long term average.TMT occupiers reclaimed their position as the most active occupier sector in July, after briefly losing their poll position to serviced office providers in June, and now account for 27% of total West End take-up in 2017,demonstrating the well diversified make up of the West End tenant base.”

“The events of the past 14 months may have made some occupiers pause for thought, but these latest record figures, against a backdrop of strong office take-up across central London to year date, belie any fears that may have been circulating of a mass exodus of occupiers from London. They therefore serve as a boost for the city amid ongoing concerns over Brexit negotiations.”

July’s largest transaction saw Spotify acquire 104,133 sq ft (9,674 sq m) at The Adelphi, WC2, which is now fully occupied, while HSBC took the entire 36,500 sq ft (3,390 sq m) at 7 Cork Street, W1. 

 

 
 

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Key Contacts

Hunter Booth

Hunter Booth

Director
Office Agency

Savills Margaret Street

+44 (0) 20 7409 8832

 

David Garland

David Garland

Research Analyst
Commercial Research

Savills Margaret Street

+44 (0) 20 7016 3832