Office take-up in London’s financial district has reached its second highest monthly total since the pandemic began.
In April, take-up reached 337,631 sq ft, according to Savills, the second highest level since March 2020 when the first lockdown was introduced. Year to date take-up has now reached 1.11m sq ft, with 92% of the space taken being grade-A quality.
The research points to a swift resurgence in the Square Mile’s leasing market as workers begin to return to the office, and will encourage landlords who are hoping occupiers’ appetite for office space has not waned as a result of the pandemic.
Occupier demand for space across central London, including the City, has also risen 6% to 10.1m sq ft. This comprises 7.1m sq ft of active requirements and 3m sq ft of potential requirements.
Philip Pearce, head of Savills’ central London agency team, said: “Occupiers have accepted that even future hybrid working models are likely to require them to have the same quantum of office space and are moving fast to take the best quality space, as witnessed by 92% of offices taken this year being grade A.”
Despite the increased monthly take-up, April saw just 12 deals – the lowest number so far this year.
Nevertheless, three notable prelets helped the month’s take-up figures, led by JLL acquiring a prelet of 134,000 sq ft across the sixth to eighth floors at British Land’s 1 Broadgate development, EC2, on a 15-year term. 1 Broadgate will become JLL’s UK head office and the firm will take occupation in 2026.
Another sizeable prelet saw laboratory diagnostic provider Synlab acquire the entire building at 41 Blackfriars Road, SE1, around 93,000 sq ft of space. Synlab intends to create one of the largest, purpose-built pathology laboratories in the UK.
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