Take up of London office space dips amid uncertainty

Uncertainty in the run up to the EU referendum saw take-up for London office space fall 22% quarter-on-quarter to 2.4 million sq ft in Q2 2016. Available space increased for the fifth consecutive quarter to 13.3 million sq ft.

This is according to global real estate advisor CBRE, which claims that the second quarter saw take-up of Central London office space dip to its lowest level since Q3 2012, 23% below the 10-year average of 3.2 million sq ft, as EU uncertainty weighed on the minds of businesses operating in the capital.

The subdued second quarter followed a buoyant start to the year, signified by five leasing deals exceeding 100,000 sq ft.

CBRE head of London leasing Emma Crawford said: “As we emerge from a quarter characterised by referendum uncertainty, it’s not particularly surprising to see some occupiers opted to delay decisions until the political storm had passed. While the referendum may be behind us, the political uncertainty continues, but the appointment of a new Prime Minster is already helping to steady the ship.

“We expect activity to remain subdued for the near term as the macro economic environment remains uncertain. However, the fundamentals of the market remain strong and ultimately will outweigh any short-term negatives. London’s size, the transparency of the market, the rule of law, the advantages of having the pound and the English language remain unabated.”