Office take-up activity in the Greater London and South East market hit 1.3m sq ft in H1 2024 – 45% head of the same period last year, and in line with the five-year average, according to the latest data from Savills.
The most active business sector in H1 2024 was manufacturing and industry – including pharmaceutical companies – which accounted for 19% of overall take-up in the period, followed by public services, education and health (17%).
One of the largest deals was Allwyn signing for 64,000 sq ft at The Clarendon Works in Watford (pictured).
Andrew Willcock, head of Greater London and South East office agency at Savills, said: “The last six to 12 months have been much improved as evidenced by take-up increasing substantially compared to the same period last year. Occupiers have a much clearer idea of their working policies and spatial requirements, striving to secure the limited prime space in the market.
“Excluding some Greater London locations, there is a clear supply and demand imbalance for offices that offer a high level of amenity and excellent ESG credentials, with the very best offices commanding new headline rents.”
Robert Pearson, director in the Greater London and South East tenant rep team at Savills, added: “Occupiers are increasingly selective, favouring spaces that align closely with specific requirements around location, amenity and ESG credentials. However, because of the limited supply and pipeline of this premium space we are observing occupiers starting their real estate planning much earlier.
“While this can lead to some occupiers considering re-gearing as a short term solution, the dynamic underscores the importance of strategic real estate planning and the potential benefits of flexible lease terms in a tight market.”
