Member Article

Batting off the Brexit blues, London office space take-up rebounds in July

The amount of floor space taken up by businesses in Central London for the month of July saw a significant uptick in comparison to the previous month, as the Brexit gloom on London’s office market begins to lift.

In total 980,400 sq ft of office space was leased by businesses in Central London, a 24% increase on June’s figures and the strongest monthly average since March, according to real estate advisor CBRE.

Boosting figures slightly were three marquee deals above 50,000 sq ft, with Wells Fargo’s relocation of its European headquarters to a new 220,700 sq ft property in the City of London the month’s biggest deal.

Banking and finance led the surge, accounting for 31% of take-up, followed by business services (22%) and the creative industries (17%), as the sector shook off its pre-referendum slump.

Following release of the figures, Emma Crawford, Head of London Leasing at CBRE commented: “Much has been said about the health of the London office market this year, but clearly demand for office space remains buoyant.

“Businesses are still confident about London’s significant advantages as a global business centre, even when the UK is outside the EU.

“This continued demand, mostly driven by key lease events, in a market with low supply, is maintaining headline rents at the same rate as in May and June.”

While the full impact of June’s referendum on the economy is yet to be understood, and with competing numbers and figures being released on a seemingly daily basis, CBRE’s figures show that London still remains an enticing proposition for businesses despite the ongoing uncertainty.

With this in mind, and striking a note of caution, Emma added: “Of course the jump in leasing activity is good news for the market, and whilst this is not universal across all sub-sectors of the London market, even with heightened economic and political uncertainty, longer term prospects remain promising.”