London office market ends 2017 on a high

The figures were buoyed by a series of large transactions, with 17 transactions involving more than 100,000 sq ft of space, the highest annual total since 2001.

Take-up during the final quarter of the year was 3.8m sq ft, an increase of 10% on the previous quarter. Total transaction volume for each of the last three quarters has been above the 10-year average of 3.1m sq ft.

There were seven deals involving more than 100,000 sq ft in the final quarter of 2017, the highest number since the first quarter of 2010.

The business services sector accounted for the largest proportion of take-up at 37%, followed by the creative industries sector (20%) and the banking and finance sector (15%).

Space under offer in central London stood at 3.1m sq ft in the fourth quarter of least year, 11% above the 10-year average of 2.8m sq ft.

The largest proportion of properties under offer was located in the City, where levels at the end of the year stood at 1.4m sq ft, 22% above the 10-year average.

Emma Crawford, managing director of London leasing at CBRE, said: “Against a difficult backdrop in 2017, London once again gritted its teeth and showed its continued resilience. This is reflected in our office leasing figures which show a year-on-year increase of 7%.

“Whilst the serviced office sector accounted for a large proportion of leasing activity in central London, as we finished the year the largest under offer of the quarter was in the banking sector, which despite initial fears is indicative of London maintaining its crown as Europe’s premier financial hub.”