Despite London continuing to dominate Europe’s tech investment activity, take up in the London office market fell below trend for the first time in two years, driven by stock shortages which stand at their lowest level in a decade. Space availability in the West End represents less than one year’s supply at trend levels of take up.
The tightness of the market has placed pressure on rents, which in the West End, rose for the first time in two years, reaching £110 psf at the end of H1 2019.
Demand for office space has slipped back given the political backdrop, but with limited Grade A supply coming forward, the coming year may prove frustrating for those occupiers who remain active. Stock shortages also hinder the evolving role of London as a global science and tech hub, not ideal given wider challenges to the sector presented by Brexit.
£110 sq ft
To subscribe to receive further 'Our View on...' databook papers, please click here.