Midtown Investment turnover in the 1st Quarter hits £1bn, bucking Central London trend
27 April 2016
Low levels of Take-up and the delivery of 234,455 sq ft of completed speculative space in the 1st Quarter 2016 pushed total Midtown Availability up by 19% on the previous quarter, with the Availability Rate rising to 3.6%.
Take-up of office space was down 7% however, there was still a healthy churn of office space with 68% of transactions at 5,000 sq ft in size or under. Demand is stable and continues to be DAMIT driven (Design; Advertising, Marketing & PR; Media; Internet and Technology & Telecoms) with 51% of all requirements accounted for by these sectors, 24% of which are for media firms and 11% of which are Technology & Telecoms.
It was an exceptional quarter for Investment, however, with over £1bn invested in London's Midtown in 25 transactions, almost double the £567m recorded in the 4th Quarter of 2015.
With the European Referendum on the horizon we are undoubtedly seeing Overseas Investors becoming more circumspect, but in Midtown, its unique fundamentals are helping to sustain Investor interest.
We do anticipate a pause in the 2nd Quarter, but it is worth noting that the occupational market in Midtown, which is characterised by a high volume of deals at the small-to-medium size range, is less affected by the political uncertainty than other Central London markets.