Demand for Office Space at 3-year High.
Demand for office space in London is at a 3-year high point, it was been revealed.
Boosted by major deals like Amazon confirming its move to AXA's ambitious 'Sixty London' development, companies are taking up more space in the City than in recent years.
The study, by property consultancy CBRE, revealed take-up during the second quarter reached 1.6m square feet - above the 10 year average of 1.2m square feet. This rapid increase has been put down to the expansion of media, technology, and telecoms firms, many of whom are currently seeking out space. Insurance firms continue to occupy and take up space.
BNP Paribas Real Estate has confirmed this is at the highest level since final quarter 2010, which take-up reached 1.87m square feet.
There have been three deals for over 100,000 square feet in the City this year, including insurance firm Aon signing up space in the still under-construction Leadenhall Building. Eight deals of over 50,000 square feet were closed - the highest number since fourth quarter 2010.
Take-up in Central London is at 3.4 square feet - up 32 per cent on the previous quarter.
City agency director Chris Vydra said “it remains to be seen” if this is a turning point in the market but it showed “steady improvement”.