“Companies have responded to the challenges of the past few years by focusing on what’s right for their business. Naturally, for some, this has involved consolidation to bring their people together in less, but better quality, space – but a greater number have been expanding their footprints. Combined with a record number of new entrants to the market, it is evident that occupiers continue to see value in a presence in Central London.” - Ben Cullen, Head of Offices UK
REPORT HIGHLIGHTS
- 2022 saw the highest number of deals on record, with a total of 590 transactions. This was driven by a significant 58% year-on-year increase in sub-25,000 sq ft deals, while larger 100,000+ sq ft deals decreased from 15 in 2021 to 10 in 2022.
- The number of new Central London occupiers increased marginally to 63 in 2022, another record, with an increase in those relocating from outside Central London (33 in total, including 19 from within Greater London) and strong volumes of new market entrants.
- West to East migration dominance returned after an evenly matched 2021, with 31 occupiers moving in this direction compared to 19 the other way.
- Of the established companies, 377 occupiers expanded on their prior accommodation, resulting in a total net expansion of 4.58 million sq ft, led by the banking & finance and professional services sectors.
- Interestingly, the average distance moved by occupiers who relocated within central London in 2022 was 0.88 miles, slightly less than the 0.96 miles recorded in 2021. However, government and public sector occupiers, media, and retail & leisure businesses relocated further afield from their previous London office.
