2022-10-12-莱坊-London_Offices_Spotlight_2022_Q3_7页_244kb

London Office Market Spotlight Q3 2022 Summary

Overall London Market Overview

• Total office take-up: 2.65m sq ft
• Office vacancy rate: 8.6%
• Key themes include strong demand in the West End, rising tension due to prime space scarcity, and adjustments in office rentals and pricing from interest rates.

West End Overview

• Leasing market: Take-up declined by 36.9% YoY; vacancy rate dropped to 6.1%. Key deals include transactions at high rents like £125.00 PSF for properties like Lansdowne House.
• Investment market: Turnover fell by 25.9% YoY; yield stabilized. Development pipeline indicates ongoing projects with speculative growth.
• Overall, demand remains robust despite economic pressures from rising interest rates.

City & South Bank Overview

• Leasing market: Take-up saw mixed results with vacancy rate rising to 9.3%. Notable tenants include financial firms at rents like £72.50 PSF.
• Investment market: Turnover increased by 4.5% YoY; yields varied, with deals like Canary Wharf properties acquired by investors.
• Market shows resilience in core areas, but vacancy levels rose, reflecting economic headwinds.

Docklands & Stratford Overview

• Leasing market: High vacancy rates (15.2% Q3) with recovery in take-up; key tenants like Citi secured space at below-average rents.

• Investment market stable or inactive in Q3, with yields around 4.75% for existing deals.

• Area faces challenges in vacancy, but development pipeline supports future activity.

• Market trends highlight repricing and sparser prime spaces across submarkets, influenced by broader economic factors.