The Greater London and South East office markets rebounded last year, with a 46% increase in take-up compared with 2020 to 3.53m sq ft, according to research.
Leasing activity rose across the region, with the northern M25 seeing a 148% increase on 2020 and the Thames Valley seeing a 57% rise, said Savills.
Overall, 65% of take-up was for grade-A space, which increased to 79% in the Thames Valley, with a return in corporate demand bringing 45 deals of more than 20,000 sq ft. Of these, 10 deals were 50,000 sq ft or larger, the highest number since 2018.
Jon Gardiner, head of national office agency at Savills, said: “While we aren’t out of the woods yet with regards to Covid, 2021 was a significant confidence booster for the market, with take-up being only 2% below the long-term average.”
Rob Pearson, director in the office tenant representation team at Savills, added: “While companies are still trying to understand exactly what hybrid working means for them, what is clear is that the environment offered is now just as important as size requirements.”
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