Even as London’s office space market suffered in view of the UK’s exit from the EU in July and August, last month (September) appears to be normal, as sales and leasing activities have picked pace. Industry experts are describing September as a normal period for the real estate sector and effectively driving away concerns over Brexit.
According to the latest research report released by Knight Frank on London’s office space absorption – “The London office market today is facing a situation very different to that seen in the weeks after the referendum – the impact on the market has not been as great as originally feared.”
Citing the reopening of UK property funds that were gated in July and banks realigning their forecasts on recession, Knight Frank is of the view that things are set to change in the property market, especially in London. Though leasing supply is below the long-term average level, it is gradually rising. A few landlords are now planning to lease in buildings whose redevelopment was on hold.
British media reports quoting Knight Frank that the demand for office space was 9.5 million square feet between June and September in Central London are also encouraging signs. This demand is much more than the long-term quarterly average of 7.5 million square feet.
The leasing market is seeing mixed conditions, with supply gradually rising, but rents mostly stable