According to proprietary research by DeVono Cresa (DC), Q2 2020 saw 1.2m sq ft of office space leased across central London – a drop of 57% on the previous quarter. With the market feeling the full effects of the COVID-19 lockdown, demand, availability and rents in central London all trended as predicted, but with the pace somewhat subdued.
However, Q1 2009, at the time of the Global Financial Crisis (921,000 sq ft leased), still remains the lowest quarter of take-up. Total office space leased for the first half (H1) of 2020 was 3.9m sq ft, down 43% on H1 2019. The average deal size in Q2 2020 however was 8,160 sq ft, in comparison with 5,785 sq ft in Q1 2020.
“Our data from Q2 2020 has shown that demand for office space has not disappeared and with a number of deals already signed in July, businesses continue to commit to future office space and look for opportunities in the market,” said Shaun Dawson, head of insights at DC.
Office availability in Q2 rose by only 8%, with 14.9m sq ft available across central London since the beginning of Q2 2020.