Office uptake in west London
by Natalie Vincent Tue 17 April 2018, 11:27 am
Office occupation in the Western Corridor increased by 31% in the first quarter of 2018, compared to the corresponding period last year, according to property consultant JLL.
Nearly 48,000sq m of workspace was leased across the region, representing an increase of 31% on the corresponding quarter of 2017. In contrast, investments fell, with £350 million-worth of transactions taking place compared to £560 million in Q1 2017.
JLL credited the occupancy uptake to the location and quality of the office space offered, with grade A buildings accounting for 70% of the deals. It said: "This flight to quality has defined the Western Corridor market for some time. Occupiers continue to pursue high-specification buildings, with grade A take-up accounting for 85% of all deals in 2017."
The increase in leases has already reduced supply levels to below 92,903sq m. They are expected to decrease further over 2018, potentially creating a rush to occupy smaller spaces.
James Finnis, head of south east office agency at JLL, said: "The Q1 take-up figures represent a solid start to 2018. The 50% increase in the number of deals in Q1 illustrates growing occupier confidence.
"Occupiers are focused on the best space and there is widespread evidence of tenants trading up but taking less overall square footage. Flexibility remains important with occupiers wanting to build in options to either grow or downsize."
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