Savills has announced strong office take-up volumes for the City of London, with 2.79m sq ft of office space leased during H1. This marks a significant 10% increase compared to H1 2023, and a notable 19% increase over the five-year average. Savills also confirms that there is over 2m sq ft of office space in the City under offer, surpassing the long-term average by 21%.
In Q2, office take-up amounted to over 1.62m sq ft, which represents a robust 16% increase year-on-year compared to Q2 2023. Moreover, the quarter witnessed a substantial 38% increase over the previous quarter, and a remarkable 37% surge compared to the five-year Q2 average. This reflecting a resilient market amidst evolving economic conditions.
The insurance and financial services sector emerged as a standout performer, contributing 932,000 sq ft to the total take-up for H1. This sector's performance marks the strongest first half since 2010 and accounts for 34% of the total take-up during this period.
Stuart Lawson, a director in Savills’ Central London Agency team, stated: "The first half of 2024 has demonstrated positive progress in the City of London's office market, following on from a strong 2023. The substantial increase in both H1 and Q2 take-up volumes, particularly driven by the Insurance and Financial services sector, underscores the strength of demand from key occupiers . It has also rewarded those with the conviction to deliver new schemes, such as 40 Leadenhall and 8 Bishopsgate, where demand has outstripped the space available. With a notable uptick in under offers, we anticipate continued momentum in the coming months."