The office take-up in Central London reached 5.5 million sq ft. (510,950 sq m) during the first six months of 2017, registering a 23 per cent increasing over the corresponding period last year. The latest data released by real estate advisory firm Savills is a positive health indicator of the London property market.
According to Savills research, office take-up in Central London in the first half of 2017 is higher than the 10-year average (also 4.5 million sq ft./ 430,500 sq m). The take-up increased in both London’s City and West End markets driven by ongoing strong demand from tech and media (24 per cent market share in the City, 25 per cent in West End), insurance and financial (13 per cent market share in both the City and West End) and with strong take-up from serviced office operators (8 per cent market share in the City, 27% in West End).
In the City, take-up was also driven by the professional services sector, which accounted for 16 per cent of activity, according to the firm.
This increased activity sees 36 per cent of the City’s development pipeline for 2017 – 2020 already pre-let while the statistics for West End market is 29 per cent. Overall, at the end of H1 2017, 11.8 million sq ft. (1.09 million sq m) of space remains available across Central London according to the research.
Savills says take-up has increased in both London’s City and West End markets driven by ongoing strong demand from tech and media (24% market share in the City, 25% in West End)