Tenant demand has eradicated the concerns surrounding Brexit. London occupiers are growing, requiring more space within the City and the West End, resulting in demand quickly catching up with supply.
London’s West End saw a significant amount of activity last year, especially from the technology and finance sectors. JLL reported that the volume of transactions included KKR 57,000 sq ft pre-let of 18-19 Hanover Square – the largest pre-let transaction in Mayfair since 2002. As the finance technology market grows, the demand for space will only continue, especially as London’s reputation as the ‘global centre of fintech’ continues to rise. Currently, 17 of the top 50 fintech companies in the world are situated in the capital, including Funding Circle, TransferWise and Nutmeg, so it can be expected more will look to have a presence.
It appears to be ‘business as usual’ despite the uncertainty surrounding Brexit. Leasing activity remains buoyant with 237,000 sq ft under offer during January this year with some large deals including:
With the leasing market proving confident, the pressure on West End office developments is increasing. Savills research shows 68% of all office developments and refurbishments set to complete in London’s West End this year already pre-let. With supply relatively low and the commitment from occupiers willing to pre-let, any space that delivers a premium offering will be highly sought after – a lucrative opportunity for developers, investors and landlords alike.
Some large office space to be completed this year include:
London’s West End property market is proving to be a fast-paced and competitive sector. Despite BREXIT, the demand for space is showing that irrespective of the outcome, London will continue to be a key city for business.