Member Article

Office take-up in London remains steady despite Brexit uncertainty

Demand for London offices in the first quarter of this year has remained steady despite economic uncertainty and the impending EU referendum, according to figures released by CBRE.

The global real estate advisor’s quarterly report on London’s office space market reveals that 3.1m sq ft of offices were secured by companies in total in the first quarter, which is only slightly below the 3.2m sq ft 10 year average.

Figures were boosted somewhat by global media firm Thomson Reuters’ acquisition of 315,400 sq ft of office space at 5 Canada Square in Docklands, the quarter’s biggest deal in the capital.

Meanwhile, the amount of space under offer remained static at 3m sq ft, the same figure as the final quarter of 2015.

There had been fears that demand for office space in London would stagnate due to a combination of economic and political uncertainty, brought on by uncertainty in the global economy and the UK’s impending EU referendum.

However, these fears appear to have been unfounded and Emma Crawford, Head of Central London Leasing at CBRE, believes the figures are a testament to the capital’s continued strength as a global hub for business.

Emma commented: “Between a weak outlook for global economic growth and an upcoming vote on EU membership, businesses have had to contend with a heightened level of uncertainty.

“That demand for office space has remained so resilient speaks volumes for London’s ongoing attractiveness as a global hub for those companies hoping to lay down roots or expand their footprint in the capital.

However, today’s figures may be the calm before the political storm, with CBRE predicting even greater uncertainty in the second quarter which may impact on office uptake, particularly if the UK votes to leave the EU.

With this in mind, Emma added: “Whilst the high level of space under offer is particularly encouraging, we anticipate a more subdued Q2 as the referendum vote gets closer. We will be on course for a rebound in leasing activity in the second half of the year provided the UK votes to remain in the EU.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →