Our quarterly review of the central London office occupier and investment markets
Total take-up fell to 1.1 million sq ft in Q2 2020, which was 49% below the previous quarter and 57% below the 10-year average.
The largest transaction of the quarter was to BP at Cargo, E14 where the oil and gas giant took 205,000 sq ft, after having been under offer for several months prior to COVID-19.
The following months could see some change as the real impact of COVID-19 on the economy sets in and occupiers potentially reconsider their space needs. Several companies are taking the opportunity to conduct a strategic review across their occupational estate with a temporary reduction in occupancy expected in some cases. The pandemic has changed the priorities of both investors and tenants when it comes to making real estate decisions. It is also expected both will place a larger emphasis on health and wellbeing when considering the pricing and take-up of office space, moving away from purely a focus on size and location.