Cluttons has released its London Office Market Outlook report for Spring 2018.
High preletting rates involving best in class office developments is the bright spot in an otherwise quiet occupier market, where take up has fallen materially compared to a somewhat surprisingly buoyant total for 2017.
The serviced office sector is the most active market sector, with WeWork alone accounting for 9% of take up over the last 12 months.
Statistics show a significant migration of smaller occupiers from conventional leasing to serviced space, but there remains a big question mark over whether the growth in this sector is sustainable.
Investment activity continues to be dominated by the overseas cohort and domestic investors remain a small player in the Central London office market. Still, with no signs to suggest an easing of the voracious appetite amongst international buyers, demand is expected to stay strong, although other commercial asset classes continue to deliver better returns.
For more detail on the market, including our expectations going forward, please download your copy.