London Office Market 2020
- paulives0
- Jan 11, 2020
- 2 min read
Preliminary results from a year of research by Apollo Business Research suggests that London office market lettings for 2019 (540 deals of 5,000 sq ft and over) will reach just over 12m sq ft. This figure is in line with recent years.
Further ABR research suggests that there are at least 250 named companies with office requirements of 10,000 sq ft or more in the London market. ABR forecasts that 2020 could equal or surpass the 2019 take-up figure.
The 2019 outturn included major lettings to EBRD at Bank Street, E14, BT at Braham Street, E1 and Facebook at Regents Place, NW1. Nearly 5m sq ft of the 12m sq ft transacted was for new Grade A, not previously occupied office schemes. The year was notable for nearly 50 pre-lets of office space in uncompleted buildings, agreed across central London.
The City of London accounted for just over 5.1m sq ft of the office lettings signed during the year, with the West End totalling 3.3m sq ft, helped by big pre-lets to the likes of Apollo Capital, Bridgepoint, G-Research and Diageo.
London office lettings would not have matched the 5 year average had it not been for the contribution of business services, and in particular the serviced office sector, which saw leasing deals last year top 2.7m sq ft.
Tech topped 1.5m sq ft helped by big deals to Apple, BT and Facebook, but it was Financial Services that topped the league with 2.9m sq ft of lettings including the largest deal of the year with EBRD’s 365,000 sq ft pre-let at Canary Wharf.
Looking ahead, up to 250 named London medium/large requirements for 2020 are dominated by financial services, followed by professional and technology sector companies.
Paul Ives was Head of Research for Metropolis Movers and Cityoffices between 2001 and 2019. He is now a consultant working with individual companies providing services to the London Office Market.
Contact Paul via Linkedin if you have a research proposal to discuss
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