Another positive indicator for the strength of the London commercial real estate sector is that news that London’s West End witnessed record breaking levels of ‘under offers’ for office accommodation in May, according to data from CBRE.
The global real estate advisors’ latest Central London office MarketView further demonstrates an increase in ‘under offers’ across Central London by 6%, to stand at 3.8 m sq ft, which is 37% above the 10-year average. This is the third month in a row under offers have increased in London, highlighting continued investor confidence, and steady levels of demand in the occupier market.
The West End has seen the largest numbers of “Under Offers”, the highest level on record, with spaces ranging from 20 000 sq ft up to a staggering 550 000 sq ft. There is still a huge amount of space coming into the market which in turn is putting an emphasis on incentives to entice tenants and negotiate lease packages. It has been suggested that this may translate to higher than usual take up’s in the latter part of 2017.
Emma Crawford, Managing Director, Head head of Investor leasing at CBRE, said: “There is a healthy demand for office space in London, although mostly lease event driven, which may translate to higher levels of take-up towards the end of 2017. “The pattern of occupier sectors under offer is balanced giving firm strength to the market, and confirms that London remains top of mind for many occupiers looking to expand.”