The office market in London’s Docklands saw a sharp drop in occupancy last week, according to new figures.
The week-on-week drop to 8.4% from 18% across the submarket comes after a resurgence in Covid-19 cases, hospitalisations and deaths in the UK, which is thought to have prompted hesitancy among some office employees about travelling into work – especially by public transport.
Occupancy rates in the City of London also eased, but by significantly less. Offices were on average 19.8% full in the Square Mile last week, according to the data provided exclusively to EG by management consultancy Remit Consulting – only a small drop from 21% the previous week.
The West End had an average occupancy of 27.3% and Midtown had 16.5%, both slight rises on the previous week, and perhaps reflecting the fact that they are more accessible by means other than public transport.
Covid-19 cases have risen to more than 50,000 cases per day in recent weeks, prompting some health officials to call for the reinstatement of some restrictions.
The government has so far resisted these calls, with hospitalisations and deaths significantly limited by widespread vaccination in the UK.
Cases have also begun to stall in the past few days, which will encourage office landlords. But it is not yet clear whether that will entice more cautious workers back to the office.
EG revealed this summer that law firm Clifford Chance was considering leaving Docklands, where it has leased a 1m sq ft office building for more than two decades, in favour of the City.
EG understands that Clifford Chance is actively considering six potential new headquarters in the Square Mile and three in Canary Wharf, with hopes of whittling that down to a shortlist by the new year.
US law firm Skadden also opted to leave its Canary Wharf office earlier this year, signing for 65,000 sq ft at AXA IM Alts’ 22 Bishopsgate, EC2.
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