A newfound clarity around companies’ office strategies has seen under-offer leasing deals jump in the first three months of 2024, according to new analysis from CBRE.
The agency tracked 4.1m sq ft of space under offer during the first quarter, up by a fifth on the long-term average. A year ago the figure stood at 3.2m sq ft.
Around 2.6m sq ft was newly placed under offer during the period, CBRE said, including 1.4m sq ft in March alone. All submarkets posted quarterly increases in under-offers, led by a 78% rise in the City of London.
There were 14 deals for space greater than 50,000 sq ft under offer at the end of Q1, the highest quarterly total since the same period in 2022. Of those deals, banking and finance accounted for the most space (48%), then professional services (21%) and creative industries (11%).
Rob Madden, CBRE’s head of London investor leasing and occupier brokerage, said: “While Q1 office take-up figures were subdued compared to long-term averages, the number of deals and volume of space under offer across all the main London submarkets is incredibly positive. These deals under offer demonstrate the more confident market sentiment, particularly towards the ever-decreasing pipeline of grade-A space, as occupiers have more clarity around their office strategies. This resurgence in activity and the competition for the very best space will translate to the take up figures as we progress into Q2.”
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