The office space absorption in London increased by 21 per cent during the third quarter of 2016, indicating a rebounding of the commercial market, which witnessed a slow down during the second quarter.
Approximately, 2.9 million sq ft of prime London office space was leased by companies between July and September, according to a latest survey released by global real estate adviser CBRE. The office space intake during the second quarter of the year was 2.4 million sq ft in London and it can be attributed to Brexit. However, now that the absorption level has increased, market experts expect the momentum to continue into the fourth quarter as well.
The increase in the absorption of office space can be attributed two big deals – letting of 467,300 sq ft at Battersea and owner occupier acquisition of 220,700 sq ft at Central, King Street, London, according to CBRE. However, the amount of space under offer in Central London reduced by 23 per cent during the third quarter in view of the two big deals.
The amount of space on offer, however, is above the 10 year average of 2.8 million sq ft for the period and the demand in London continues to remain high. If you are looking for suitable office space in London, connect with Strawberry Star property experts by calling our London office.
Take-up of London office space rebounded in Q3 2016 after a weak second quarter, according to the latest MarketView from global real estate advisor