South East Offices Review Q2 2020
After a subdued Q1 2020, leasing volumes reached just 260,628sq ft in Q2 2020, signalling the lowest quarterly take-up volume on record. This brings H1 levels to 678,422 sq ft, 45% below the same period last year and 54% below the five-year H1 average.
Other key findings include;
- The largest deal of the quarter was Hewlett Packard’s 31,484 sq ft letting at The 210 Building, Winnersh Triangle, Reading. Interestingly, the three largest deals of the quarter are to Technology companies.
- Unsurprisingly, in the second quarter of the year transaction volumes hit previously unseen lows due to the truly seismic impact of COVID-19. South East investment volumes in Q2 2020 reached £108m, significantly down on Q2 2019 at £398m.
- Boosted by robust levels of activity in Q1 however, H1 volumes stand at £1.2bn, up 46% on the same period last year. The pandemic and lockdown froze both the consumer and global economies with direct consequences for operating cash flow and investment volumes. Looking ahead pricing is softening and investment opportunities are beginning to appear.