London availability 15th September 2014

DTZ has released office occupancy figures for London for August which shows that availability continues to fall as economic confidence returns and is now 25% below the same point last year and over a third lower than ten years ago.

Decreasing choice for tenants is leading to an increase in pre-completion lettings, as well as more take up outside the traditional City and West End boundaries. Amazon and Havas are recent examples companies that have taken space outside the core, and space that is not yet completely built.

A brief summary of points are

•Central London take up reached 840,000 sq ft in August, bringing the year to date total to 8.8 million sq ft.
•This is 12% up on the same period last year.
•Availability has decreased month on month throughout 2014, standing at 10.7m sq ft in August (5% lower than the previous month).
•There was 2.8m sq ft under offer last month, slightly up on the five year monthly average of 2.6m sq ft.
It concludes with “Availability in Central London has fallen month on month this year and is now 25% below the same period in 2013. The increasingly limited choice of existing offices has resulted in a number of large pre-completion lettings, the latest includes Havas’s acquisition of 158,000 sq ft at 3 Pancras Square, King’s Cross.”