- Take-up in the South East office market reached 616,748 sq ft in Q3 2019, down on Q2 2019 but up on Q1’s total of 505,914 sq ft. This brings 2019 take-up to end September to 1.8m sq ft, which is 18% below the same period last year and 13% below average take-up in the first nine months of the year.
- Following a lack of deals in the >100,000 sq ft size bracket in H1 2019, Samsung Electronics’ 100,000 sq ft acquisition at 2000 Hillswood Business Park, Chertsey provided a significant boost to figures.
- Encouragingly, investment activity in the South East picked up in Q3 by 87% to £834m. 19% up on Q3 2018 which brings year to date investment levels to £1.7bn however, this was driven by two factors. Firstly, that £400m comprised the sale of Croxley Business Park by way of an income strip to Goldman Sachs and secondly that Q2 was a particularly low quarter as investors paused on transactional activity in April.
- Over Q3 we have seen UK Institutions and Fund investment dominate, accounting for 55%. A notable deal in this investor category was Royal London's acquisition of Renaissance in Croydon for £60m. This places UK Institutions and Funds as the largest investors into South East offices in 2019 to date deploying £550m (33%).
Click to read South East Offices Review Q3 2019