Central London office occupancy levels remained strong in Q4 2019, with take-up increasing and the vacancy rate falling compared with the prior quarter.
Take-up in Central London in Q4 2019 increased 4% compared with Q3 2019, to 3.6m sq ft; exceeding the ten-year quarterly average of 3.3m sq ft. Despite a decrease in the amount of space taken by flexible office operators (following heightened activity in Q3), overall take-up increased on the previous quarter, with healthy levels of take-up activity across a range of different sectors.
The business services sector (which includes flexible office operators) remained the largest proportion of Q4 take-up, at 25%, followed by banking and finance (23%) and creative industries sectors (21%).
The final quarter of the year saw two deals larger than 100,000 sq ft: Facebook’s acquisition of 144,500 sq ft at 10 Brock Street, Regent’s Place, Euston and Monzo leasing 122,300 sq ft at Broadwalk House, Broadgate, EC2. The Monzo deal was one of 12 deals of over 10,000 sq ft to FinTech companies during the year.