london markets - Gerald Eve

construction across central London, with the majority being built in the City. ... The changing nature of occupier employment across the capital was reflected by ...
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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