2024-05-17-莱坊-London_Offices_Spotlight_Q1_2024_7页_2mb

London Offices Spotlight Q1 2024 Summary

Overview

• Take-up: 9.9%
• Availability: 12.59 m sq ft
• Vacancy Rate: 10.2%
• Prime Rent (City & Southbank Submarket): £87.50 per sq ft
• Investment Volume: £1.31 billion
• Prime Yield: 5.25%

Key Themes

1. Lettings Market Pauses: Quarterly take-up fell by 31.5% (YoY change noted as 9.4%).
2. Near-term Space Requirements: Active requirements climbed 8.8%.
3. Prime Yields Remain Stable: Market yields stayed flat at 5.25%.

Submarket Performance (Leasing & Investment Yield %)

Submarket Vacancy & Price Highlights

• Highest Vacancy: Docklands & Stratford (17.6%), Lowest (City Core): 4.9%
• Highest Prime Rent: West End Core (at £150 psf)
• Highest Price (psf): HX5 Harbour Exchange (Docklands) £31.50
• Lowest Price (psf): Rest of Docklands £32.50
• Highest Transaction Value (psf): Greater London House (West End) £56.00

Key Observations

• Clear Geography: Premium district (West End) vs. Core City/Stratford vs. Outer areas.
• West End Dominance: Demand driven by premium environments needing less density.
• Outer Area Growth: Docklands shows signs of increasing quarters-on-market (properties staying rented longer without offers).
• Investment Stability: Primarily seeking London Core/City, despite lower TRA levels.

Overall Trend

• Stable Market: Paused after strong 2023/2024.
• Short-term: Space demand continues to rise.
• Long-term: Focus remains on quality assets and Docklands/Suburban areas offering better price points.