2022-05-19-莱坊-London_Offices_Spotlight_2022_Q1_7页_226kb

LONDON OFFICE MARKET SPOTLIGHT Q1 2022

Report Overview

• Total office take-up in Q1 2022 was 2.65 million sq ft, representing a significant decline. Development pipeline remains constrained relative to long-term averages since Q4 2015.
• The first quarter saw the highest level of quarterly investment transactions since at least 2015.

Leasing Market (Overall)

• Total office take-up fell by 591,000 sq ft to Development pipeline remains constrained relative to long-term averages since Q4 2015. prime take-up levels since Q4 2015.
• Overall vacancy rates decreased slightly, though active requirements increased.
• Key leasing deals involved prominent occupiers and high PSFs, particularly in prime locations.

Investment Market (Overall)

• Turnover reached £5.86 billion.
• Investment activity was particularly strong, characterized by high turnover and low yields.
• Key investment deals involved major global corporations and investment funds acquiring high-value office properties.

Submarket Performances

• West End: High prime rents (£120 PSF), 6.6% vacancy rate, and significant investment activity.
• City & South Bank: High activity, lower vacancy rates (around 6.6%), and significant investment turnover.
• Docklands & Stratford: Higher vacancy rates, lower prime rents, and focused development pipeline with speculative elements.
• Region-specific trends in take-up, vacancy, and investment activity are detailed.

Key Insights

• Despite a downturn, London's office market remained resilient, with strong investment demand.
• Prime locations continued to command premium rents and lower vacancy rates.
• Development activity was focused, particularly in high-value areas like the City and West End, while Docklands showed signs of adjustment.