Central London take-up reaches almost 6.5 million sq ft in first seven months

12 September 2017

Office take-up in Central London reached 890,161 sq ft (82,696 sq m) in the month of July 2017, taking total take-up for the year to date to 6.4 million sq ft (597,061 sq m), according to international real estate advisor Savills, with the West End market seeing take-up of above half a million square feet in two consecutive months for the first time in 17 years.

In the City of London, take-up for July was 376,470 sq ft (34,974 sq m), bringing total take-up in the market in the first seven months of 2017 to 3.5 million sq ft (327,651 sq m), 9% up on the same point in 2016. 80% of transactions this year have been of a grade A standard, says Savills.

The West End office market, meanwhile, has experienced take-up of over half a million square feet for two consecutive months for the first time since April 2000, says Savills. Take-up reached 513,691 sq ft (47,722 sq m) in July 2017, following June’s take-up of 760,026 sq ft (70,606 sq m). According to Savills, total West End office take-up for 2017 to the end of July was 2.9 million sq ft (269,410 sq m), 33% above the same point in 2016 and 37% above the long term average.

Tech and media companies (TMT) have been the most active occupiers in both markets this year, says Savills. In the City, to the end of July, the TMT sector accounted for  24% of 2017‘s transactions, followed by the professional services sector at 17%, and the insurance and financial services sector at 12%. Serviced office providers also continued to expand, accounting for 8% of take-up. In the West End the picture was similar: TMT accounted for 27% of 2017 take-up to the end of July, but serviced office providers were the second most active accounting for 23%, followed by the insurance and financial services sector at 12%. 

Philip Pearce, head of the central London agency team at Savills, comments: “Across central London the office markets are healthy, with 2017 take-up in both the City and West End far above their long term averages. TMT occupiers have been the busiest this year, belying concerns that London was going to see an exodus of tech companies after the UK’s vote to leave the EU, but with financial, professional services and serviced office providers also proving to be active, the diversity – and strength – of the city‘s tenant base has been on full display this year.”

 

 
 

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