Take-up at the end of October reached 391,464 sq ft, with a further 29 transactions completing over the month. This brought year-to-date take-up to 3.45m sq ft, up 7% on the long-term average, as the Tech/Media & Financial Services sector continue to drive take-up across the West End.

Over the year so far we have seen a high concentration of leasing activity around Soho and the North of Oxford Street sub-markets. In total transactions across this area have accounted for over a quarter of the number of transactions that have completed (82).

The Tech & Media sector has accounted for 25% of year-to-date take-up, whilst the Insurance & Financial sector followed behind with a 21% share and the Serviced Office Provider sector with 18%.

We saw this year’s largest transaction complete during the month, with Facebook acquiring the Ground to 4th floors (144,525 sq ft), at Regent’s Place, 10 Brock Street, NW1, which was previously occupied by Debenhams.

Another notable transaction to complete during the month was Apollo’s pre-let of the 2nd to 4th floors at Derwent London’s 1 Soho Place development, W1, which is scheduled for completion in Q4 2021.

Around 36% of the space that has been pre-let during this year has been in Soho and already 50% of the development pipeline for the next five years in this sub-market has already been pre-let. In total, across the West End as a whole, 27% of the 2020-2023 development pipeline has been pre-let and at least a further 10% is currently under offer.

Notable pipeline developments currently under offer include 20 Manchester Square, W1, (100,000 sq ft), 1 Wood Crescent, W12, (110,000 sq ft), and Oxford House, 1 Newman Yard, W1 (80,000 sq ft).

Supply has remained at the same level as the vacancy rate at 4.0%, down 20 bps on the same period a year earlier. We expect supply to continue to remain constrained over the next year, with 63% of the extensive refurbishments and developments scheduled for completion over the next year already pre-let and virtually all the remaining speculative space scheduled for delivery in 2020 currently under offer.

In 2021, 45% of the scheduled deliveries have already been pre-let. With around 600,000 sq ft of the development pipeline currently under offer, pre-letting will continue to significantly reduce future speculative deliveries.

Underlying demand continues to remain robust with space under offer standing at 1.78m sq ft at the end of the month, up 19% on the average amount we have seen over the last 12 months.

The quantum of occupiers actively searching to acquire space across the West End and Central London at present equates to 4.3m sq ft. The Tech and Media sector continues to be the main driver of demand and accounts almost a third (31%) of active and potential West End and Central London requirements. The Insurance & Financial sector is the next largest sector driving demand (21%).

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