The latest (Q1 2023) report on the Central London office market by DeVono has revealed that office availability in the Docklands is now at a 30-year high, while the amount of office space leased across the capital in Q1 was down 21% compared to Q4 2022.

The firm reported: ‘2023 has seen a slower start to leasing activity, ending a relatively buoyant run in 2022. Office take-up in Q1 2023 reached 2.6m sq ft, not only representing a reduction of 21% on the previous quarter but a drop of 12% compared to the same point at the start of 2022. Several factors have hampered leasing activity at the start of the year, not least of all strong economic headwinds causing a significant amount of trepidation among UK firms, but also a reduction in large businesses committing to new space, and a reduction in the size of spaces taken.

‘With the exception of the technology sector, all business sectors recorded a drop-in leasing activity in Q1 2023 on the previous quarter. Despite the drop, there has been little change in the sector split of activity from one quarter to the next.’

Sector analysis
The financial sector saw a reduced level of take-up in Q1, dropping 27% on Q4. Despite this the sector has retained its place as the top occupier for take-up in central London. Financial sector leasing volume was bolstered by Pimco’s letting of 106,000 sq ft on Baker Street. The financial sector has returned to its pre-pandemic leasing patterns with its share of leasing in Q1 2023. Its attraction to the West End continues into 2023 with 65% of the space taken this quarter being situated in this market.