INSIGHTS
London Moves
As the London office market continues to evolve and adapt, the London Moves report provides a detailed analysis of the trends and shifts in 2023. It highlights the who, what, where and why of office relocations across the Capital. We delve into the intricacies of the market, providing thought-provoking insights and actionable data for investors, occupiers, and developers.
London Moves analysed 545 Central London leasing transactions that took place across 2023, dissecting the data by a combination of metrics and categories including relocation type, submarket, business sector and size.
Read the report and get in touch with one of the team to understand how this data and insight can be applied for you.
“The London office market continues to demonstrate resilience and adaptability. The sustained high volume of transactions, coupled with the steady influx of new occupiers, underscores London's unwavering appeal as a global business hub. This year's trends, notably the migration trends and the significant expansions in Central London, reflect a market that continues to flourish, whilst still adapting to the on-going, and well documented, structural and cyclical changes. Our 'London Moves' report captures these movements and offers configurable data points that can be applied to support varying applications for our clients.” Ben Cullen, Head of Offices UK
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LONDON MOVES ANALYSIS
The number of deals in 2023 (545) remained high, albeit 9% lower than the volume recorded in 2022 which was a record high. As with 2022, this was driven by a high volume of 5,000-25,000 sq ft deals (438), although this was a reduction of 11% on the prior year.
There were 59 new Central London occupiers taking space across the market, in line with 2021 but marginally lower than the 2022 when 63 new entrants were recorded. Of this number, 28 occupiers were new businesses acquiring their first office space, while the remaining 31 occupiers relocated from outside of Central London, of which 12 were from within Greater London. This graph shows these new entrants by sector.
Of the companies that already had a Central London presence, 327 occupiers expanded on their prior accommodation, either through relocation or an additional office, equating to total expansion of 3.69 million sq ft. A further 92 occupiers reduced their space through relocation, a loss of 1.77 million sq ft, resulting in an overall expansionary market of +1.92 million sq ft.
FAQ
The volume of deals in 2023 stood at 545, which is 9% lower than the record high volume recorded in 2022. This was mainly driven by a high volume of deals between 5,000-25,000 sq ft which numbered 438, a reduction of 11% from the prior year but proportionately aligned to prior years at c.80%.
Core locations of Mayfair & St James’s and the City Core, and submarkets bordering these areas, remain the most attractive for investors, occupiers, and developers, showcasing strong rental prospects and lower vacancy rates compared to non-central locations. With supply expected to tighten in the core over the coming years, competition for space will drive further rental growth.
In 2023, 181 deals were signed in the City Core, which was the highest number of deals since 2015. Nearly 50% of occupiers who relocated remained within the City Core. In the West End, Mayfair was the most active with 33 deals signed during the year, of which a third relocated from within the submarket.
Government and Public Sector occupiers, Media and Retail & Leisure businesses remained the most footloose within Central London, maintaining long-term trends.
In 2023, there were 59 new Central London occupiers. Of this number, 28 were new businesses acquiring their first office space, while 31 occupiers relocated from outside Central London.
In 2023, 327 occupiers expanded their prior accommodation, either through relocation or an additional office. This resulted in a total expansion of 3.69 million sq ft.
In 2023, 46 occupiers relocated from the West End to the City, which was the highest figure since 2015. Whilst cost is always a considered driver, the lack of available grade A space in the West End is driving occupiers to search in alternative locations.
In the 100,000 sq ft+ market, there were 7 deals in total. Of these, 5 occupiers expanded by 593,000 sq ft while 2 contracted by close to 800,000 sq ft. This resulted in a net loss of space of -204,000 sq ft.
The average distance moved by occupiers who relocated within Central London in 2023 was 0.86 miles, in line with the results in 2022.
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