West End
Keys stats this quarter
TAKE-UP FOR Q2 (SQ FT)
48% below the 10-year quarterly average
VACANCY RATE
PRIME RENT (PER SQ FT)
Mayfair
In Q2 2024, West End take-up stood at just 310,000 sq ft, which is 24% down on the equivalent quarter in 2023 and 48% below the ten-year average. Activity in the quarter was held back by fewer large deals, and as with other sub-markets, we believe the general election prompted a wait-and-see approach among those tenants with active requirements.
TMT & Creative was the largest source of leasing demand with the sector accounting for 19% of take-up; followed by Consumer Services on 12% and Professional Services on 12%. Within Consumer Services, there was a weighting towards deals by retailers for their headquarters and administrative functions.
The largest West End deal of Q2 was outdoor clothing and equipment retailer, Mountain Warehouse, acquiring 33,000 sq ft at Howick Place, SW1, in Victoria. Also, online games firm, Product Madness, signed on 26,000 sq ft at 80 Strand, WC2.
The vacancy rate in the West End edged up to 3.8% in Q2 2024, up from 3.1% in Q1. However, this is low compared to the wider Central London market at 7.1% and below the 10-year average for the West End of 4.3%. So, while demand has been subdued recently, this has been partially counterbalanced by low supply.
Prime headline rents in the core Mayfair market increased from £150.00 per sq ft in Q1 to £160.00 per sq ft in Q2, although there have been some exceptional deals at significantly higher rents than this. Other sub-markets that saw rental growth included St James’s (rising from £130.00 per sq ft in Q1 to £135.00 per sq ft in Q2) and Covent Garden (up from £90.00 per sq ft in Q1 to £95.00 per sq ft in Q2).
KEY DEALS
Source: Avison Young
TOP TENANT SECTORS Q2
Source: Avison Young
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