As I predicted in January, Central London office rent has continued to rise during the first quarter of 2014 and there are increased supply shortages throughout the Greater West End. In Q1 2014, we have noted an on average 2.5% rental increase throughout the 18 central London sub markets covered in our rental guide.
And tenant incentives such as rent free periods are dropping like a stone.
The movers and the shakers
Around 3 million ft2 of office space went under offer in Q1, almost double the average over the last 5 years. Big name tenants on the move include Transport for London, looking at space in Upper Bank St and Google, who are poised to take over 160k sq ft in 6 Pancras Square, close to Kings Cross. Other major movers include the advertising giant Havas and Estee Lauder.
KPMG are looking to complete the consolidation of their 6700 staff into a single location in Canary Wharf within a year. But bowing to the importance of West End based decision makers unwilling to travel east to see their bean counters, they are also reportedly in talks to take 40,000 ft2 in Mayfair from the Grosvenor Estate.
And for the rest of the year?
Please take a look at our recently updated London office rental guide for a comprehensive breakdown.