A recent report by DTZ shows indications that take-up for offices in the City is 64% higher than at this time last year.  In terms of figures, this amounts to around 800,000 square feet, comprising in part Deloitte’s acquisition of 1 New Street Square (260,000 square feet), which is added to the 256,000 square feet of space that Deloitte already occupies at 3 New Street Square. 

Historically, the Hammersmith office market was shunned by the Core West End and behaved as its own separate market. The general feel of the area has always been rather grungy and provided lower quality space than the core markets, and the rents reflected this. However, over the last two years the Hammersmith market has been evolving to become an extension of the West End.

The summer Deloitte London Office Crane Survey 2015 has shown construction in the Capital growing by 24% in the last 6 months; the total space under development now totals 9.5m sq. ft., with 31 new developments adding 4.4m sq. ft. to the ever growing crane presence in Central London. 

The development of the city is on the increase as the developers see the opportunity to add more character to an areas which was historically the home of more corporate environments like the finance industry and law firms. In comparison to the West End, the area is lacking in the presences of pedestrian areas and quirky bars and eateries. 

DTZ have confirmed a deal to acquire global Real Estate giants, Cushman & Wakefield, in a deal that will see both companies work under the Cushman banner. The company, owned by Italian billionaire Agnelli family, was put up for sale in February – it is expected that DTZ will pay around asking, £1.3bn, generating a capital gain for the family of £722m. The transaction is expected to close by the end of the year, and signals another huge development in Real Estate acquisitions. 

The serviced office was born 30 years ago and traditionally occupied fringy locations in cities were the buildings tended to be of a lower quality than we see today. In the last 4 years the serviced office market has experienced a boom and has been healthier than the traditional leased office market.

As Chinese investment continues in the UK, there are recent reports that the country’s state-backed insurance company China Life is intending to enter into a 50% ownership agreement for 99 Bishopsgate. China Life is the largest commercial insurance company in mainland China with assets amounting to more than £105 billion. It is also one of China’s largest institutional investors. 

Real estate investment and private equity group Landmark Partners has announced that its fund, Landmark Real Estate Fund VII (LREF VII) has reached around £1.05 billion at its close.  The fund is the group’s biggest global real estate secondaries programme, and has helped to increase the firm’s committed capital to around £10 billion. 

Take-up in Central London offices has increased 11% each year, hitting its highest level since 2000. In particular, the Docklands area as much as doubled thanks to activity at Canary Wharf. 

It may not have seemed like it but many business were holding off any big decision until post elections and this includes property decisions. With the election over, we anticipate a climb in demand in the market as companies are ready to make their move.