London office market slows drastically.
CBRE statistics show that the London office market has somewhat stalled.
New research from CB Richard Ellis has shown that the London office market has slowed substantially in recent times. CBRE’s monthly overview for office space in Central London this August showed that the market has been declining since the start of this year. The market has slowed rather a lot since January with July’s office space take up on just reaching 658,000 square feet.
A total number of just four deals above 20,000 square feet were carried out during July which is an astounding -31% below the standard long term trend. Countering this however was a sharp rise in new office space development take ups. That said there was a close to 45% fall in second hand take-up which drove the overall take up percentages down. CBRE focused mainly on office space in the City and the West End where the leasing numbers were 310,800 square foot and 227,200 square foot respectively.
Commenting on the state of the London office space market the head of Central London Agency, Digby Flower, said: “Take-up was very subdued during July as occupiers continued to reflect current economic conditions and remained cautious about committing to significant amount of space.”
In fact, the biggest deal that the London office space market saw in July was Expedia’s move from the West End of the capital to the City. The company took up 81,300 square feet of office space in the landmark Angel Building.