No real surprises on our recently published central London office rent guide for Q3 2019.
In summary I would say:
- Headline rents remain unchanged from the last quarter. Quoting office rents in Covent Garden – for example – show signs of inflating, but I suspect well-negotiated deals done will be at lower levels. For the time being we are keeping the guide for quality office space in Covent Garden at £65.00 per ft2.
- Some good news for tenants: we are finding landlords will often bend over backwards to keep good tenants in their office buildings. So if their existing space still meets their needs, we are often negotiating favourable terms to renew leases.
- Rent free remains at 9 – 12 months on a 5-year term for taking space direct from landlords.
Landlords will often bend over backwards to keep good tenants in their office buildings
As we enter the Brexit Endgame…
The London office market is surprisingly robust, given our daily diet of scary political and economic news. Maybe we are just so monumentally bored by Brexit that business decision-makers have stopped watching Newsnight!
I look forward to writing my next post at the end of Q4. We may then have a better idea if are “DOOMED” as Private Frazer of Dad’s Army used to say. On the other hand, maybe we’ll be witnessing a slight rebound, as the UK economy trundles into a future with Europe – divorced but still retaining marital benefits!