Facebook deals drive central London office takeup

Office deals signed last month by Facebook helped drive the total takeup in central London past the 10-year monthly average.

Companies transacted 1.2 million sq ft of office space in the centre of the capital in July, according to real estate advisory firm CBRE.

The figure puts July ahead of the monthly average of the last 10 years, currently 1 million sq ft.

It was driven up by two deals from social media giant Facebook, for 600,600 sq ft across 11/21 Canal Reach and Building P2 Handyside Street, both in N1.

July takeup was led by firms from the creative industries, which accounted for 679,400 sq ft or 61% of the space taken.

The business services sector accounted for 17% of the total, with flexible office providers snapping up 133,200 sq ft.

Business services has been the most sector in the office market for the last 12-months, accounting for 31% of takeup, followed by creative (at 25%) and banking and finance (16%).

CBRE senior director Simon Calvert said: “It is a sign of international confidence in London that major tech and creative companies are continuing to acquire large volumes of space across the capital.

“The outlook for the next quarter remains positive, with July under offers 43% above the 10-year monthly average, having been above average for each of the last eight months.”