Developer confidence has dwindled with the amount of offices under construction well below the peak of the market in 2007. Maybe that is a good thing given the macro economic situation but don’t get too smug that the property industry has eventually got things right – there is every evidence that completions are about to boom. EG will be reporting on completion levels next week. Bookmark this page to see the data.
DEVELOPER CONFIDENCE
Date
Construction amount
High
2007
9.6m sq ft
Low
2009
2.1m sq ft
–
2016
5.5m sq ft
Two
The City remains the dominant market in London but all six submarkets fell below the five-year annual average for take-up.
LONDON OFFICE TAKE-UP
Market
Take-up (sq ft)
City
3,390,858
City Fringe
1,578,600
Docklands
1,288,983
Midtown
1,426,072
Southbank
696,415
West End
2,275,753
Total
10,708,665
Three
Take-up in the West End fell by nearly a third in 2016 compared to the previous year.
Four
The City and Docklands each scored two of the biggest deals of 2016. Four of the top five deals were post the EU referendum vote.
Top 5 deals of 2016
10 South Colonnade, E14: Deal size 536,398 sq ft
Battersea Power Station, SW8: Deal size 500,000 sq ft
5 Canada Square, E14: Deal size 315,536 sq ft
33 Central, King William Street, EC4: Deal size 227,689 sq ft
One
Developer confidence has dwindled with the amount of offices under construction well below the peak of the market in 2007. Maybe that is a good thing given the macro economic situation but don’t get too smug that the property industry has eventually got things right – there is every evidence that completions are about to boom.
EG will be reporting on completion levels next week. Bookmark this page to see the data.
DEVELOPER CONFIDENCE
Date
Construction amount
High
2007
9.6m sq ft
Low
2009
2.1m sq ft
–
2016
5.5m sq ft
Two
The City remains the dominant market in London but all six submarkets fell below the five-year annual average for take-up.
LONDON OFFICE TAKE-UP
Market
Take-up (sq ft)
City
3,390,858
City Fringe
1,578,600
Docklands
1,288,983
Midtown
1,426,072
Southbank
696,415
West End
2,275,753
Total
10,708,665
Three
Take-up in the West End fell by nearly a third in 2016 compared to the previous year.
Four
The City and Docklands each scored two of the biggest deals of 2016. Four of the top five deals were post the EU referendum vote.
Top 5 deals of 2016
[gallery type="slideshow" ids="871426,871425,871424,871423,871422"]
Occupier
Building
Size (sq ft)
When
Market
1
Government Property Unit
10 South Colonnade, E14
536,398
1 December 2016
Docklands
2
Apple
Battersea Power Station, SW8
500,000
1 September 2016
South Central
3
Thomson Reuters
5 Canada Square, E14
315,536
1 March 2016
Docklands
4
Wells Fargo
33 Central, King William Street, EC4
227,689
1 July 2016
City
5
Financial Times
Bracken House, 1 Friday Street, EC4
182,635
1 December 2016
City
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LONDON OFFICES MARKET ANALYSIS Q4 2016
• Analysis – offices drop by 25% but rate of descent slows
• Who is London’s top office agent?
• London offices breakdown by submarket
• London office investment down by 25% in 2016
• Who is London’s top Q4 agent?
• Four things you need to know about the London offices market
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