SHB Real Estate - London Office Market Snapshot (May 2021)
Summary
- Source: SHB Real Estate
- Market: Office
- Date: May 2021
Key take aways
- Take-up office space rise of nearly 30% compared with the Q4 2020 figure
In the first 3 months of 2021, take up of office space across Central London rose by nearly 30% compared with the Q4 2020 figure of just under 900,000 sq. ft.
- Sizeable deals across London
There were some sizeable deals across London that lead to this increase, notably the 88,500 sq. ft. TikTok deal at Kaleidoscope in Farringdon and a pre-let to legal firm Latham & Watkins at 1 Leadenhall (199,000 sqft).
- 0.6% reduction in vacancy from 2.1% in Q1 2020 to 1.5% in Q1 2021.
We have seen a steady rise in vacancy across all submarkets from its YOY average in 2020 with one exception. Typically, undersupplied Kings Cross and Euston, saw a 0.6% reduction in vacancy from 2.1% in Q1 2020 to 1.5% in Q1 2021. On the contrary, the largest increases were found in the City Fringe of 5.6% in 2020 to highs of 9.2% in Q1 2021. Other areas such as Midtown saw 3.3% increase YOY and The City, 3.5 YOY