Figures released by Savills show how hard the pandemic has hit London’s commercial property market.
West End leasing activity in the second half of the year is down 67% on the long-term Q2 average, not surprising given its covers the key lockdown months of April, May and June of this year.
To date, Savills has completed 102 commercial transactions, which is just over half the number it carried out in the same period last year (190).
Over the past two months, many of Savills’ tenants have put their requirements on hold, seeking short-term extensions and reviewing their options.
On a more positive note, there has been little evidence of any substantial downward pressure on headline rents.
At the end of the first half of this year, the average prime rent stood at £113.66 per sq ft, which is down by only 4% on the average achieved during the first half of 2019.
London’s tech and media sectors continue to account for more a third (35%) of demand this year for Savills’ clients’ properties followed by the insurance and financial sector (21%).
Next up are retail and leisure and business and consumer, each accounting for a 12% share of take-up.
Significant transactions for Savills‘ West End commercial team in June saw Roxor Games pre-letting the entire building at 25 Golden Square, Ted Baker pre-letting six floors of the Tribeca scheme at 2–6 Pancras Way, and Boohoo.com leasing the fifth floor of Euston Tower (pictured).