Take-up for South East office space in Q1 2019 has soared by 72% year-on-year as the lack of Grade A space in the region drives demand.
Grade A office space take-up spiked to 614,879 sq ft in Q1 2019, up from 285,841 sq ft in Q1 2018, just 2% below the five-year quarterly average of 827,176 sq ft, according to new research by Colliers.
In the agent’s South East Offices Q1 2019 Snapshot, the report claims there has been a recent demand for larger floor space.
Around 544,153 sq ft was leased in Q1 this year, with 65% of transactions agreed for over 20,000 sq ft of space (up from 55% this time last year).
Tech and media occupiers took up the majority of space leased, accounting for 21% of deals struck (accounting for 169,555 sq ft of space).
This demand has been driven by “ever reducing options for larger Grade A buildings”, according to head of South East offices director Mark Emburey.
“Tightening supply dynamics in the South East will continue to keep rents strong, although in some locations there has been more pressure on landlords to offer greater lease incentives to secure occupiers’,” he said.
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