Businesses went berserk for office space in central London after the Brexit vote
Businesses flooded back into central London after the Brexit vote, new research has suggested – with the amount of new office space leased by firms jumping by 24 per cent.
Research by CBRE suggested businesses leased 980,400 sq ft of office space in July, a quarter more than in June and the strongest monthly average since March.
That included three major 50,000 sq ft deals in July, including Wells Fargo's deal to take 220,700 sq ft of space at 33 Central on King William Street.
Read more: Businesses are moving out of central London because of high rents
In fact, almost a third of all central London deals were accounted for by the finance sector, with businesses services making up 22 per cent and the creating industries adding 17 per cent.
To be fair, though, it was coming from a low base – enthusiasm for London office space has been at historically low levels in recent months, and July was no different, with take-up remaining below the 10-year average of 1.1m sq ft a month.
Meanwhile, available office space increased by two per cent in July, to 13.6m sq ft – although that was seven per cent below the 10-year average.
"Businesses are still confident about London’s significant advantages as a global business centre, even when the UK is outside the EU," said Emma Crawford, head of London leasing at CBRE.
"This continued demand, mostly driven by key lease events, in a market with low supply, is maintaining headline rents at the same rate as in May and June."