Central London office space has been flying off the shelves in recent months, a report has revealed, as take-up surpasses a 10-year record.
According to new figures, published by real estate advisory firm CBRE, take-up in Central London for the third quarter of 2017 was 3.4 million sq ft – an increase of three per cent on the previous quarter and around 10 per cent above the 10-year average.
During the same period, there were four deals over 100,000 sq ft, the largest of which was a 549,000 sq ft pre-let at 21 Moorfields, EC2, a development connected to the new Crossrail station. The remaining three deals all took place in the West End, the report added.
Availability also rose when compared with the previous quarter, rising two per cent to 14 million sq ft.
Emma Crawford, managing director of London leasing at CBR, said: “The resilience of the Central London market shows no sign of abating as appetite for prime office space continues to see strong demand, particularly amongst the banking and finance, business services and creative industry sectors which accounted for the highest percentage of third quarter take-up.”
The positive figures also flow through into the commercial real estate market, with total turnover topping £11.5 billion in the last 12 months.
Commenting on the figures, Stephen Down, head of Savills central London investment team, said: “The first half of 2017 saw central London investment increase 12.3 per cent on the same period last year; while we’re only a month into H2, the momentum has continued and total 2017 investment volumes may well surpass those of 2016.”
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