Office take up in central London reaches highest level since 2014
Central London office take-up for the whole of 2018 reached 14.61 million square feet, some 14% higher than the long term average and the highest level since 2014, new research shows.
Overall Central London office take-up in 2018 was more than 5% higher than the previous year which stood at 13.84 million square feet, according to the latest report from global property advisor Knight Frank.
It also shows that whilst take-up for the fourth quarter of 2018 totalled 3.82 million square feet, slightly surpassing the previous quarter of 3.74 million square feet.
The increase in total take-up comes as 2018 saw more deals over 50,000 square feet at 48 than in the previous 12 months with the fourth quarter seeing 15 deals.
Technology, Media and Telecommunications (TMT) was the most dominant sector taking space during 2018, accounting for 27% of all take-up, followed by finance with 19%.
‘We are continuing to see business as usual in the Central London office market, despite the fears that companies would put decision making on hold until after the conclusion surrounding Brexit,’ said William Beardmore-Gray, head of central London at Knight Frank.
‘Having seen an increase in take-up in 2018, we are confident that this trend will continue into 2019 and companies will continue to make positive decisions regarding their new offices,’ he pointed out.
‘In fact, the diminishing development pipeline is likely to create a supply shortage as businesses plan ahead of lease breaks and expiries over the next three years, resulting in a short term squeeze for any companies needing to move during this timeframe,’ he added.