As uncertainty of Brexit’s impact on demand in the market, CBRE has reported that during the “traditionally quiet” first quarter of 2016, demand for office space in London remained robust, with 3.1 million sq ft of offices being taken up by companies.
The 3.1 million sq ft is below the 10-year average of £3.2 million, however matters are set to improve with a major move by Thomson Reuters which is taking 315,400 sq ft at 5 Canada Square in the Docklands, resulting in a lift of take-up for the quarter.
At 3 million sq ft, the amount of office space currently under offer remains unchanged from the previous quarter. This has been above the 10-year average of 2.8 million sq ft since the start of 2014.
Head of Central London Leasing at CBRE, Emma Crawford, commented: “Between a weak outlook for global economic growth and an upcoming vote on EU membership, businesses have had to contend with a heightened level of uncertainty.”
She added that the resiliency of London office space demand speaks volumes of the capital’s attractiveness as a global hub.
Concluding: “Whilst the high level of space under offer is particularly encouraging, we anticipate a more subdued Q2 as the referendum vote gets closer. We will be on course for a rebound in leasing activity in the second half of the year provided the UK votes to remain in the EU.”
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