Skip to main content Skip to footer

Data Bite - London Grade A Offices Availability August 2021

Download Report
alt=""

12 08 21 London Grade A Offices Availability

What:

London Grade A offices availability as a percentage of overall marketed vacancy, has ticked up marginally over the past six months. In the City of London, in particular, where transaction levels have failed to keep track with the bounce seen in other London submarkets, delivery of new speculative Grade A reached a three year high in 2020, despite the impact of the pandemic. 2018-2019 combined, saw just over 1 million sq ft of new speculative space brought to market in the City but in 2021 to date, that figure has already been exceeded.

The West End market continues to see supply shortages for Grade A space. Just 6,000 ft of brand new spec space has been delivered in 2021 to date, to add to just 81,000 sq ft (2020) and 74,000 sq ft (2019).

While Grade A availability represented 50% of availability in 2014, that number stands at half that (25%) in 2021. Competition for premium space in the West End, including the best quality second-hand, is intensifying and set to not just bolster headline rents but provide ample evidence of uplift over the next 12-18 months.

Why:

While super performing tech giants such as TikTok and Snapchat have made, and are in the process of making, significant long-term commitments to expansion space in London, others such as Babylon Health are taking a wait-and-see attitude, opting for shorter term sublease space on 2-3 years terms. Others such as law firms, Hogan Lovells and Addleshaw Goddard and biotech company Lab Genius continue to explore stay-or-go strategies.


alt=""

Data Bite - London Grade A Offices Availability August 2021

Download Report
Related Experts

Walter Boettcher

Head of Research and Economics

Research and Forecasting

London - West End

I am the the Chief Economist at global property advisors Colliers International based in London.  I am a research economist identifying timely research topics and directing research and forecasting outputs.

I have over 20 years UK and European property industry experience and extensive expertise across a wide range of property sectors and related industries.

I participate regularly in industry panel discussions, but am focused more on direct client engagement with institutions, property companies, banks, and private investors. A regular media commentator, I have a wide range of national and broadcast experience.

I joined Colliers International in August 2007 after several years at a private property company where he was responsible for managing a mixed portfolio of London residential, retail and office assets.

Previously, I worked in a few London property advisory firms, a geodemographic company as well as a few youthful sojourns in the US offshore oil industry, local government and entertainment business.

I am an economics graduate of the University of Texas at Austin and received his PhD from the Faculty of Science at University College London.  I am a member of Lambda Alpha International and the Society of Property Researchers.

Perhaps best known for my alternative take on property economics and investment, I am a keen proponent of UK regional development and infrastructure investment.

View expert

Oliver Kolodseike

Director of Economics and Research

Research and Forecasting

London - West End

Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

View expert

Guy Grantham

Director of Research and Forecasting

Research and Forecasting

London - West End

Guy has been a property research professional for 23 years and gained extensive knowledge of the UK and Global property markets. He has worked closely with a wide variety of major developers, landlords and occupiers in a consultancy capacity. Instrumental in supporting Hines' purchase of Brindleyplace for £200m, on which Colliers advised. He is now specialising in the London Office market using his extensive knowledge and experience to provide market leading insight into current occupier, investment and development trends.

View expert