14 February 2019
Office take-up spikes on London’s South Bank

Office take-up across London’s South Bank rose by 93% in the last quarter of 2018.  According to the latest South Bank Market Update from Union Street Partners - the area’s leading specialist property consultancy - a total of 549,357 sq ft was leased in Q4 which was nearly double the Q3 level.  This took total take up for the year to 1.2m sq ft which was 8% down on 2017.

USP Partner, Simon Smith, commented: “This year, the only factor that is likely to constrain this strength of take-up is the supply curve. Vacancy across the South Bank market is now at around 2.8% - half the rate of the West End and City markets and just below Midtown.  The development pipeline is similarly constrained with the majority of space due to come on stream this year already accounted for by prelets. Beyond the next 24 months the pipeline looks healthier with six consented schemes that could provide a further 2m square feet.  The South Bank’s food and drink scene around Waterloo is set to be transformed by the new Waterloo.London project."

USP Retail Partner, Matt Martin, commented: “This £200m project involves the extensive refurbishment of the former Eurostar terminal at Waterloo, to create a 135,000 sq ft retail and leisure destination.  Working with developer LCR, we’ve secured a 32,500 sq ft pre-let to Time Out Market which will form the centrepiece and sit alongside a genuinely exciting mix of complementary occupiers. With over 100m people passing through Waterloo each year and TOM’s Lisbon market drawing 3m annual visitors, it’s clear that this is going to be one of the best and most important retail centres in London.”

In the investment market, the £256m sale of Southbank Central towards the end of the year boosted total volume to £1.1bn.