LONDON MARKETS Analysis of the London office market Winter 2017/18
International Property Consultants
2017 Take-up Q4
3.2
£67.50
£68.50
ft)
£110 dP
rime Rent (
y
r pe
A Availabi lity ade Gr
11.1
27%
MILLION SQ FT
Q4
201
y ilit 7 Availab
H2 2017 key deals
www.geraldeve.com
Pr
ft)
t Ci
t
En
sq
s We
MILLION SQ FT
ft) sq
Mi dt
rime Rent (p nP er ow
ime
R e nt ( p e
rs
q
ant Space Ten
4.8%
24.2%
Av te ailab ility Ra
Key schemes under construction
Deutsche Bank 496,000 sq ft
70 Farringdon Street 825,000 sq ft
City
Goldman Sachs/Tishman Speyer
Dentsu Aegis 312,000 sq ft
10 Fenchurch Avenue 398,000 sq ft (67,000 sq ft available space)
King’s Cross & Euston
Generali Real Estate/Greycoat/CORE
WeWork 135,500 sq ft
52-54 Lime Street & 27 Leadenhall Street (The Scalpel) 398,000 sq ft (262,000 sq ft available space)
Shoreditch
WRBC Development
Lloyds 125,400 sq ft
60-70 St Mary Axe 326,000 sq ft (166,254 sq ft available space)
City
TH Real Estate
Boston Consulting Group Ltd 123,500 sq ft
Two Southbank Place 282,440 sq ft
Fitzrovia
Braeburn Estates ( JV Canary Wharf Group/Qatari Diar)/Almacantar
EXECUTIVE SUMMARY Quarterly take-up by region Source: Gerald Eve 4.5
Availability by grade Source: Gerald Eve
Million sq ft
14
4.0
Million sq ft
12
3.5 10
3.0 2.5
8
2.0
6
1.5
4
1.0 2
0.5 0
East
West
Midtown
Southbank
Five year average
New
Refurbished
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
0
Unrefurbished
Media & Tech drives London occupier demand
An increasing number of occupiers are sub-letting space
While uncertainty reigns across the country, the London office market continues to be active with 12.8 million sq ft of space taken in 2017, a 12% increase on the previous year.
An increasing number of occupiers are sub-letting space back to the market as they reassess their real estate needs. Whether it’s to reduce overall costs, or simply due to a change in business strategy, the volume of tenant space in the market has increased from 19% to 24% of total availability. As a result, we’ve seen the volume of unrefurbished space increase over the last 12 months.
The changing nature of occupier employment across the capital was reflected by the fact that the media & tech sector was the most active throughout the year, accounting for 28% of total take-up. This included significant deals for Dentsu Aegis in King’s Cross & Euston (312,000 sq ft), NEX group in Shoreditch (112,000 sq ft), and Spotify in Covent Garden (104,000 sq ft). Although finance & banking occu
