Across the City market

City take-up at the start of the second quarter was off to a strong start, with 566,054 sq ft transacting across 22 transactions. This brought the total for the year to 1.71m sq ft across 116 transactions. This is up 6% on January to April of last year and up 3% on the long-term average for this period. The Insurance & Financial sector has continued to be the main driver of leasing activity this month with 55% of the take-up – this was boosted by the 250,000 sq ft pre-let of British Land’s 2 Finsbury Avenue, EC2, by Citadel, (the c. 914,932 sq ft development is currently scheduled for completion in 2027).  

Another notable transaction this month was serviced office provider Industrious taking 74,502 sq ft at 131 Finsbury Pavement, EC2, a building that WeWork formerly occupied. Another space formerly occupied by WeWork that became available over the month was  57,000 sq at 15 Bishopsgate, EC2. Alongside the gradual reduction to supply we have seen since the start of the year, we have seen tenant-controlled space across the City reach 2.7m sq ft, its lowest level since July 2020.

Highlights

Across the West End market

April marked another quiet month in the West End, with just 129,005 sq ft completing across 18 transactions, marking the weakest month since January 2021. This brought the total for the year so far to 754,000 sq ft, down 25% on the same period last year, and 35% on the ten-year average as business confidence continues to lag.

Following off the back of strong levels of take-up last year, the Retail & Leisure sector continues to be resilient, with leasing activity totalling 119,431 sq ft, up 3% on the ten-year average. This was boosted by the largest transaction to complete this month: Mountain Warehouse’s acquisition of the Ground and 1st floors (31,455 sq ft) at 7 Howick Place on a new lease for a rent believed to be in the £60s. Despite subdued leasing activity, we have seen space under offer increase for the fourth consecutive month, with space under offer standing at 1.2m sq ft at the end of April, up 17% on the long-term average.

Highlights

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