London take up 20th October 2014

Central London offices has seen its highest quarterly take-up figures for a decade, with 2014 set to be the busiest year since 2001 in terms of take-up.

According to GVA this is "primarily down to activity in the City of London where thanks to huge deals, including major pre-lets at 10 Fenchurch Avenue and Amazon’s letting of 430,000 sq ft at Brookfield’s Principal Place (EC2), a total of 2.6m sq ft was transacted in the third quarter of 2014 in the City alone, indicating that demand for space has well and truly returned to pre-downturn levels". GVA added that with just 1.4m sq ft due to be delivered during 2015, it "seems demand will far outstrip supply in the City".

Jeremy Prosser, Director of GVA’s City Offices team, said: “The sustained high level of demand we have seen in the City, coupled with a lack of new stock coming through in 2015, means next year should see rents increase and incentives rapidly contract.”

Central London take-up for Q3 2014 totalled 3.7m sq ft, 32% up on the previous quarter, and 49% up on the five-year quarterly average of 2.5m sq ft. This was the highest quarter measured in 10 years. The City fringe saw the most activity, accounting for 40% of take-up (1.5m sq ft), 89% up on the five-year quarterly average. The City core also saw well above average take-up, up 76% on average.