The latest (Q1 2021) Central London Office Market Snapshot from commercial property consultants DeVono Cresa has revealed that the office market in the capital is still suffering badly from the pandemic.

However, the report states: ‘Another period of lockdown overshadowed the start of 2021, the long winter days did little to raise our spirits and certainly contributed to widespread business uncertainty. However, as the quarter progressed the pandemic picture improved, the successful vaccine programme got into full swing and people’s focus became firmly fixed on returning to the things that we have missed, which for a growing number includes heading back into the workplace.

‘The rosier outlook has been bolstered by the growing level of optimism amongst business leaders, which is reflected in the results from a number of published surveys. Deloitte’s survey of chief financial officers (CFOs) has recorded a 13-year high in optimism.’

The Bank of England has also forecast a strong recovery for the UK economy. This heightened confidence has filtered through to the volume of office leasing activity across central London, which in Q1 2021 increased by 27% on the previous quarter to 1.6m sq ft. Whilst this level is some way off the long-term quarterly average of 2.9m sq ft, it does highlight continued business commitment to office space, following a year which has downplayed the role of the office.

There has been robust activity from the legal sector lately, with office leasing by this sector hitting a six-year high in 2020 and its share of office leasing in London in Q1 2021 (26%) means it is now more than twice the size of the technology sector (12%) and almost equal to the financial sector (32%).