London Offices Snapshot Q4 2019

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London Offices Q4 2019

Key highlights include:

  • Political uncertainty leading up to the December election acted as a drag on demand in Q4 2019, with annual take-up just failing to exceed 10-year average.
  • Regardless, pre-letting activity surpassed 3 million sq ft, which is more than double the 10-year average.
  • London-wide vacancy ended the year at 4.8%, which is below the level recorded at the end of 2018 (5.1%).
  • Pipeline supply numbers grow more constrained due to exceptional pre-letting activity. 12 million sq ft now under construction across London but 7.5 million sq ft is either pre-let or under offer.
  • Average headline rents in London saw uplift of 2% during 2019, and we would expect a similar level of movement in the first half of 2020, as submarkets respond to elevated demand
  • Occupiers are beginning searches earlier and earlier, with some out shortlisting possible new HQs 3-4 years prior to lease expiry.
  • There is scope for some improvement in investment volumes in H1 2020 with a number of overseas investors keen to enter the market once more.

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London Offices Snapshot Q4 2019

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Related Experts

Alex Kemp

Director & Co-Head of West End Leasing

London - West End

Alex has been working in the Central London Office Market for nearly 10 years, dealing with all aspects of office agency; providing advice to developers, landlords and occupiers in respect of leasing and acquisitions. Alex joined the growing Colliers International Central London team in October 2015 from DTZ and covers the West End, Midtown, Southbank and Northern Fringe office markets. 

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Rob Hayes

Director & Co-Head

London - West End

I was a founding partner of H2SO before it was acquired by Colliers International in 2014 and have been a specialist in the Central London property market for more than 20 years.

I moved from Morgan Grenfell Laurie to Richard Ellis in 1991. Having worked in office agency until 1999, I then moved into investment and subsequently ran the market-leading west end investment team at CBRE as an Executive Director. From 2008, I took responsibility for the entire West End Business Team as well as becoming a member of the Central London Board.

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Stuart Melrose

Director & Head of Occupier Advisory

London - West End

With more than 15 years’ experience in the commercial real estate industry, I have worked in both the U.S. and U.K. markets. By providing my clients with quantitative and qualitative information, I ensure that they are well informed to make strategic real estate decisions that are aligned with their short- and- long term corporate objectives.

 

Based in Colliers’s London office, I provide valued real estate advice that achieves measurable results to clients, representing a variety of local, national, and international organisations.

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James Walker

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James is Director & Head of City Agency and Occupier Advisory at Colliers International and was previously a Senior Director at CBRE in the City Leasing team.  James has 20 years’ experience providing Development and Leasing advice to Landlords and Developers, as well as advising some high profile office Occupiers on their real estate strategy  in the City, Midtown, Canary Wharf and Southbank markets.

 

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Dominic Amey

Head of City Investment

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I am Director and Head of London City Capital Markets at Colliers International, specialising in the sale and acquisition of commercial property as well as providing development consultancy.

I joined Colliers International in 2003 as a member of the London Investment Department, specialising in London commercial property Investment, after leaving Cushman & Wakefield. With over 20 years experience of the Central London commercial property market, I have acted for numerous institutional investors including Aviva,  Aberdeen Asset Management, Legal & General and the Church Pension Fund, as well as overseas Soverign Wealth Funds, banks and property companies. I also have a wealth of experience acting on behalf of private investors from around the world.

 

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