London occupiers move east
Eye-watering rents have started to push occupiers out of Mayfair while lower rents in Aldgate and Whitechapel are drawing occupiers away from the City core.
Cushman & Wakefield’s latest Movers & Shakers report tracking London occupiers shows that Mayfair had the largest net reduction in tenants of over 10,000 sq ft last year. The City core saw 13 tenants leave, but this was largely offset by 12 coming in.
Cost-conscious public sector tenants were willing to move further than any other sub-sector, highlighted by the Government Property Unit’s move from Westminster to Stratford, whereas more traditional sectors such as insurance continued to be clustered in the City and lawyers around Temple.
Of the 249 new deals only 19 were new companies with Soho, the City core and Paddington the choice locations – with three moving to each.
What types of occupiers are taking space?
| Sector |
2016 (sq ft) |
2015 (sq ft) |
% change |
| Tech |
933,083 |
558,773 |
67.0% |
| Banking & finance |
686,411 |
901,252 |
-23.8% |
| Professional services |
344,553 |
247,244 |
39.4% |
| Retail & leisure |
336,794 |
106,830 |
215.3% |
| Government, public & associations |
257,400 |
215,764 |
19.3% |
| Media |
230,522 |
550,424 |
-58.1% |
| Legal |
207,869 |
199,805 |
4.0% |
| Insurance |
54,190 |
120,590 |
-55.1% |
| Other |
37,669 |
90,451 |
-58.4% |
| Manufacturing & energy |
16,852 |
11,230 |
50.1% |
To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette
Eye-watering rents have started to push occupiers out of Mayfair while lower rents in Aldgate and Whitechapel are drawing occupiers away from the City core.
Cushman & Wakefield’s latest Movers & Shakers report tracking London occupiers shows that Mayfair had the largest net reduction in tenants of over 10,000 sq ft last year. The City core saw 13 tenants leave, but this was largely offset by 12 coming in.
Cost-conscious public sector tenants were willing to move further than any other sub-sector, highlighted by the Government Property Unit’s move from Westminster to Stratford, whereas more traditional sectors such as insurance continued to be clustered in the City and lawyers around Temple.
Of the 249 new deals only 19 were new companies with Soho, the City core and Paddington the choice locations – with three moving to each.
What types of occupiers are taking space?
Sector
2016 (sq ft)
2015 (sq ft)
% change
Tech
933,083
558,773
67.0%
Banking & finance
686,411
901,252
-23.8%
Professional services
344,553
247,244
39.4%
Retail & leisure
336,794
106,830
215.3%
Government, public & associations
257,400
215,764
19.3%
Media
230,522
550,424
-58.1%
Legal
207,869
199,805
4.0%
Insurance
54,190
120,590
-55.1%
Other
37,669
90,451
-58.4%
Manufacturing & energy
16,852
11,230
50.1%
To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette
