RESEARCH

Central London office analysis

Q3 2020

DATA & ANALYSIS

Occupier data

Investment data

Central London rent map

COMMENTARY

Jeremy Prosser

Principal

OCCUPIER MARKET IN BRIEF

First, the good news: despite the subdued activity levels this quarter we are seeing a number of large occupiers continuing to commit long term to London. Baker McKenzie took 153,000 sq ft at DUO, 280 Bishopsgate, EC2 that will complete in late 2021 while The Office Group signed a 20 year lease for the entire building at 210 Euston Road, NW1.

In addition, the demand we are still seeing is coming from a diverse range of occupiers across central London.

Chris Gore

Principal

INVESTMENT MARKET IN BRIEF

Investment activity was markedly improved in Q3 2020 compared to the previous quarter, both in terms of volume and number of deals. Volumes increased to £1.2 billion from £682 million in Q2 but remained 67% down on the 10-year quarterly average. The relaxation of some restrictions during the summer provided only partial relief to investors with restrictions on travel, reignited Brexit negotiations and a typical summer lull continuing to have an impact. Furthermore, The RICS only lifted their Material Uncertainty Clause in July.

LONDON ANALYSIS

Central London

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Central London Occupier market

Take-up across Central London fell to 1.0 million sq ft in Q3 2020 which was 7% below the previous quarter and 59% below the 10-year average.

The largest deal of the quarter was the law firm Baker & McKenzie taking 153,000 sq ft at 280 Bishopsgate, EC2. This was followed by Netflix trebling its office space in London by taking 87,000 sq ft at the Copyright office building, 30 Berners Street, W1.

Central London Investment market

Investment volumes reached £1.2 billion in Q3 2020, 67% down on the 10-year quarterly average. Despite being below average, Q3 investment was considerably higher than the previous quarter, when just £682 million was transacted. At the end of Q3 2020, investment YTD totalled £4.2 billion, 39% and 69% down on the same period in 2019 and 2018 respectively.

West End / West London

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East London

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Tech Belt / Southbank / Midtown

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