20 April 2018 | Marino Donati
Uptake of office space in central London has increased in the first quarter of 2018 compared with the previous quarter.
According to global real estate consultant CBRE, 3.2 million square feet of office space was under offer in Central London at the end of Q1 2018, up 6 per cent on the previous quarter, and 3 per cent on the same point last year. Take-up in central London reached 2.8 million sq ft in the first quarter, with the West End having its strongest start to the year since 2012.
The largest deal was a 65,900 sq ft letting to WS Atkins at Nova North in Victoria.
Availability in central London increased by 7 per cent to 14.3 million sq ft, which was still below the total a year ago, said CBRE.
A total of 1.1 million sq ft of development and refurbishment space was completed in the first quarter of the year. Another 2.3m sq ft is expected to complete by the end of the year, with 54 per cent already committed to be leased.
Dan Hanmer, head of West End and Midtown leasing at CBRE, said: "In a noticeable trend, driven by a squeeze in supply, we are seeing continued demand for larger units, with eight transactions over 50,000 sq ft completing in Q1.
"London take-up is slightly behind trend albeit steady, however, there is renewed buoyancy in the West End market and we are seeing continued demand from occupiers in London's highest-quality buildings, a trend we expect to continue to see across all sectors."