Central London office space take-up hit a new post-pandemic high last month, according to CBRE.
Companies leased 815,700 sq ft in August, led by law firm Travers Smith’s 152,400 sq ft prelet at Stonecutter Court, EC4.
The increase saw take-up edge closer towards the 10-year monthly average of 1m sq ft, but activity remained below the long-term trend level.
The professional services sector accounted for over a third of August’s activity, but the banking and finance sector remained most active in the past 12 months, transacting on 1.2m sq ft.
In the 12 months to August, transactions totalled 5.6m sq ft across central London, relative to the market’s annual average of 12.2m sq ft. There were three deals over 100,000 sq ft, all for prelet space in the City and Midtown.
Even after the completion of a number of large deals, space under offer was up during the month.
Total under offers increased by 2%, and as a result ended the month at 3.7m sq ft, above the 10-year monthly average of 3.2m sq ft.
There were seven buildings with more than 100,000 sq ft under offer, including two newly placed under offer during August.
Rob Madden, head of London office brokerage at CBRE, said: “The London office market is making real strides in its recovery as confidence returns and companies continue to enact their return-to-work policies.
“We anticipate a continued improvement in the market, as the amount of office space under offer exceeds its long-term average in the City by 26%, and similarly in the West End and Southbank by 32% and 27% respectively.”
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