2022-02-01-莱坊-London_Offices_Spotlight_Q4_2021_7页_224kb

Overview: London's office market in Q4 2021 experienced mixed performance, with strong demand and occupancy observed in core submarkets like City & South Bank and West End, marked by increased take-up and investment. Overall vacancy rates remained relatively elevated due to a high development pipeline, influencing yields and rental growth. The market showed resilience in prime areas but faced challenges in secondary zones.

Key Themes: Quarterly take-up was low despite strong demand in prime assets, leading to yield compression in core submarkets with some sections reporting above-trend increases.

West End Submarket: Occupancy was robust with a vacancy rate of 7.7%, supported by moderate leasing activity and investments. Key leasing deals included Google at £75.12PSF, and investment turnover showed slight decline, reflecting the area's prime status.

City & South Bank Submarket: Noted a significant 66.1% increase in take-up, fueled by major occupiers like Apple, resulting in lower vacancy rates at 7.5%. Investment activity was pronounced with deals by Omnicom and Hines, driven by yield compression at 3.75%.

Docklands & Stratford Submarket: Lower take-up and higher vacancy rates (average 8.3%) indicated weaker demand, with minimal investment activity. The market appeared to stabilize, but overall figures remained sluggish.

Deals Summary: Notable leasing transactions in West End involved major firms, while investments in City featured high-value purchases, underlining market divergence between prime hubs and secondary areas. The data reflects changes quarter-on-quarter, highlighting trends from Knight Frank's extensive coverage.