Central London office leasing robust in September – CBRE
Leasing activity in the market for Central London office space continued to rise in September, says CBRE, with take-up reaching 1m sq ft and taking the total for the third quarter to 2.7m sq ft as a result – the highest quarterly total of the year so far. This compares with the 2.2m sq ft of office space leased in the second quarter, the firm notes.
Despite the weak economic conditions, there were a large number of small deals in September – only four deals of more than 20,000 sq ft were transacted. All three of the largest Central London office markets saw rising take-up, with the total for the City reaching 337,300 sq ft, Midtown jumping to 157,000 sq ft, and the West End rising sharply to 406,900 sq ft. This last increase (of 46%) reflects the decision by Debenhams to take 145,000 sq ft at British Land’s 10 Brock Street, part of its Regent’s Place development – the only pre-let recorded in September, CBRE says.
CBRE says there has been a reduction in space under offer in all Central London office markets except the City, meaning that levels of office space under offer continued to fall in September “and now stand at 15% below the most recent peak in June. However, at 2.7m sq ft, they are still significantly above trend,” the firm points out.
