Recent research undertaken by Knight Frank illustrated increased uptake in the London office space market throughout Q3 2021. The 55% increase in leasing transactions of 2.63 million sq ft leased in Q3 of 2021 demonstrates the highest quarterly increase recorded since 2009. Additional research carried out by Gerald Eve outlined a 30% increase in uptake to 2.8 million sq ft when compared to the previous quarter, something that they attribute to large commitments for space made by major occupants. Knight Frank’s research highlighted the importance of these major space commitments, with 42.4% of all transactions in Q3 being for spaces of 100,000 sq ft or more. To further support this growth in market activity, a report published by the Royal Institution of Chartered Surveyors (RICS) showed that demand for the London commercial market grew at the fastest rate since 2016 between Q1 and Q2. Despite the pandemic bringing world economies to a near standstill, the London office market has bounced back strongly to witness the second consecutive quarter of increased demand. Here are some of the factors that influenced these high occupancy levels.
