Over the first six months of 2016, less than 100,000 sq ft of future supply pipeline will have been delivered into the South Bank market. This is a pitiful amount, in any cycle, in any Centre of London core market. Headline grabbing maybe but only heightening the pressure on occupiers to find new space.
With no completions in the 1st Quarter 2016 and only 88,109 sq ft due to be brought to the market in the 2nd Quarter at Cottons Centre, Hays Lane, SE1, and 8,500 sq ft of refurbished space at Harling House, 47-51 Great Suffolk Street, SE1, it is clear that the shortage of supply will continue to apply pressure to the Availability Rate throughout 2016.
Of the current SE1 Availability, which only totals 508,325 sq ft, 59% (300,479 sq ft) is accounted for in just FIVE buildings – The Shard, Cottons Centre, 1 & 2 Paris Gardens, Beckett House and 96 Great Suffolk Street.
Tenants such as Zoopla are therefore finding that the only way to secure high quality, new accommodation is to enter into the Pre-let market or commit to lettings during construction market to ensure that their future demand is adequately met.
There is more promising news, with several construction starts during the Spring and more supply on the blocks for 2017 and 2018 but still nowhere near the delivery needed for the average quarterly take up figure.BACK TO NEWS