Quieter end to 2012

Expectations of concluding certain major pre-lets in London’s West End before the end of 2012 were only partially met. Following a strong take-up of office space in Q3 2012, in the London real estate market there was a more subdued end to the year. 

The largest deal in Q4 was LinkedIn’s letting at Castlewood House which is situated in Covent Garden and provides 50,000 square feet of office space. LinkedIn had previously occupied less than 10,000 square feet in Derwent London’s Charlotte building. In fact, we are seeing a boost in popularity of the eastern end of Oxford Street with regards to creative and digital sector companies, an example being set by Google, which took 160,000 square feet last year at Central Saint Giles. 

“Despite such examples, though, the latter provisional quarterly take-up is significantly down on the previous healthy Q3 total, and protracted deal negotiations are partly responsible. However, there does remain a good demand for office space particularly from tech companies,” comments Sally Brough, Associate Director at Morgan Pryce.

Rents for offices in Central London continued to rise in some areas such as Kings Cross, Victoria, Chelsea and London Bridge. Some locations saw an increase of £3 per square foot while other areas experienced a rise of only 50p per square foot.   

Morgan Pryce is 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.