West End Office:
Market Watch

West End Office Market Watch
West End Office Market Watch

27 February 2018, words by Ben Raywood

Significantly high level of space under offer despite slow start to 2018

Supply and demand snapshot

■ January take-up reached 243,902 sq ft across 32 transactions with an average transaction size of 7,622 sq ft.

■ Take-up was down on this point last year by 6% and also down 26% on the long-term average for January of 327,499 sq ft.



Key January stats

Table 1

Source: Savills Research

■ A notable transaction to complete in the West End in January was at One Embassy Gardens, SW8, with Penguin Random House pre-letting 83,399 sq ft on a 15-year lease at £55.00 per sq ft.

■ Elsewhere, Serviced office provider, i2 Offices acquired the 9th and 10th floors at 33 Cavendish Square, totalling 20,989 sq ft collectively, at £72.50 per sq ft on a 15-year lease.

■ The Tech & Media sector continued to lead take-up, accounting for 56% of take-up at the end of January, followed by the Serviced Office sector at 18%, and the Insurance & Financial Services sector at 10%.

■ Whilst take-up at the end of January was relatively low, a further 189,917 sq ft went under offer. This brought the total amount of space under offer in the West End to 980,976 sq ft, up 63% on the long-term average. Notable spaces currently under offer include 75,900 sq ft (3rd-5th, part 8th floors) at Nova North, SW1, 29,794 sq ft (3rd floor) at Nova South, SW1, and 28,702 sq ft (4th floor) at 1 Curzon Street.


West End 12 month rolling take-up

Graph 1

Source: Savills Research

■ Supply rose 4.5% from 4.42m sq ft at the end of December to 4.63m sq ft at the end of January, equating to a vacancy rate of 4% . This is also up 20 bps on the start of the previous year where at the same point the vacancy rate was at 3.8% . The vacancy rate still remains below the long term average of 4.5%.

■ 66% of current supply is of Grade A standard, while tenant controlled space is at 28%, up from 18% in January 2017.

■ There is 1,436,617 sq ft of development and extensive refurbishment completions scheduled for the second half of 2018, of which 964,617 sq ft, (67%) has already been pre-let. The 472,000 sq ft of speculative completions will add further to supply over the coming months.


West End space under offer

Graph 2

Source: Savills Research

■ We are currently tracking 5.8m sq ft of West End & Central London requirements, -3% below the 12-month average.

Analysis close up



Table 2



Table 3



Table 4


Demand & Under Offers

Table 5

Demand figures include central London requirements


Development pipeline

Table 6

Completions due in the next six months are included in the supply figures

* Average prime rents for preceding three months

** Average rent free on leases of 10 years for preceding three months


Significant January transactions

Table 7


Significant supply

Table 8


Savills West End office submarkets

Map 1

Receive the latest research

Retail Properties

Key contacts

Ben Raywood

Ben Raywood

Commercial Research

Margaret Street

+44 (0) 20 7409 8791