London office market favouring tenants over landlords

The central London office market has seen a marked shift in the nine months since the exit referendum in June 2016. Tenants looking for space throughout the capital are acquiring greater incentives, through rent-free periods and rental reductions, with areas such as the City and Victoria hitting landlords particularly hard.

Eugene O’Sullivan, Managing Director at tenant acquisition specialists Morgan Pryce, says: “Now is a great time to be looking for new office space. Across the capital, we are seeing more and more options in the market. When comparing this to 12-18 months ago, it is a totally different landscape. We are securing some great deals for our clients and have seen incentives reaching 12-13 months on a five-year term in the City, and have recently gone under offer on a prime Fitzrovia space for £5 under the quoting rent, with eight months rent-free on a five-year term. Landlords have had a very fruitful time over the last five years, but the market is finally shifting into a tenant market.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants