- Steady leasing activity continued in Central London during Q4 2019 standing at 3.1m sq ft, 8% down on Q3 (3.4m sq ft) and below (-7%) the long term (LT) quarterly average (3.2m sq ft). This brings the 12-month rolling total to 12.4m sq ft, 18% below 2018 (15.1m sq ft) and below the long term annual average of 13.0m sq ft.
- With Media Tech firms holding confidence ahead of the upcoming exit from the EU, the largest deal to complete in Q4 2019 saw Apple acquire 156,442 sq ft (31th – 36th) at 22 Bishopsgate, EC2. Consequently, this deal contributed to the Media Tech sector dominating 2019 demand, accounting for a 19% share on par with the sectors share in 2018.
- In the final quarter of 2019, the Central London market saw robust transaction activity. Investment volumes reached £5.5bn in Q4 2019, up on the previous quarter (£2.8bn). Although a surge of late deals were recorded towards the end of Q4 2019, overall 2019 transactions fell to its lowest level since 2011. Annual volumes in 2019 totalled £13.8bn, which was 27% below 2018 (£17.9bn) and 30% down on long term average levels.
- The largest transaction of the quarter was Ponte Gadea’s acquisition of The Post Building, Museum Street, WC1 which sold for £607.5m reflecting a 4.0% NIY. In addition, quarterly volumes were boosted by 16 transactions over £100m.
Click to read CENTRAL LONDON OFFICE MARKET UPDATE Q4 2019
