By the end of August 2017 London’s West End had seen 3.1 million sq ft of office take-up, 29 per cent ahead of the long-term average, boosted by over half a million square feet of take-up in both June and July – the first time we had seen over 500,000 sq ft of take-up for two consecutive months in 17 years.
Looking at September and the rest of the year, we already have 902,735 sq ft of offices under offer and a further 6.4 million sq ft of active requirements including those from Bluecrest Capital, LinkedIn and Cleveland Clinic. As such, the West End looks on course to exceed 2016’s annual total of 3.9 million sq ft.
Waking up post referendum on 24 June 2016 the above would have seemed unfathomable. However, office take-up in the West End since the UK‘s decision to leave the EU has defied expectations and activity belies any fears that may have been circulating of a mass exodus of occupiers from London. So why is this happening, and is there anything within the stats that explains this?
While the West End is certainly not immune to economic changes – far from it – the diversity of its tenant base means that it is in as strong a position as possible to continue to be robust in the face of the looming Brexit: TMT occupiers represent 27 per cent of take-up to year date, serviced office providers 22 per cent and insurance and financial services 12 per cent.