Autumn 2016
OUR VIEW ON
LONDON OFFICES
London suffers most in post
Brexit vote
The recent Lloyds Bank PMI survey
found that London had suffered the
most significant deterioration in
business activity following the decision
to leave the European Union.
The Lloyds Bank survey looks at both
manufacturing and service sectors,
with the UK index falling to its lowest
level since April 2009 (47.4), whilst
London recorded a survey figure of
44.4. Readings below 50 signifies a
contraction in business activity.
London’s share of UK GVA
increases to 22.5%
The London economy accounts for
22.5% of overall UK GVA, according
to the ONS’s latest estimates for the
UK’s regions.
The importance of the London
economy has increased over the past
decade, when its overall contribution
was below 20%. The most recent
estimate for London’s total GVA is
£364.3bn (2014), with inner London
contributing 68% of the total.
Inner London accounts for almost
20% of the UK’s digital workforce
London is Europe’s leading Tech Hub,
providing employment for more than
328,000 workers.
The London digital businesses are
estimated to generate £62.4bn of
turnover, which accounts for almost
39% of the UK’s digital company
revenue (Tech Nation – 2016).
THE FACTS
London’s economy hardest
hit by Brexit vote.
London provides 22.5%
of overall UK output.
£364bn
Estimate of London GVA (2014)
London’s businesses set for a
£48.5bn boost from increased
digitalisation
Oxford Economics recent report for
Virgin Media, ‘The UK’s £92bn Digital
Opportunity’ (2016) highlighted the
benefits to be gained by the UK’s
economy from the increase of digital
capabilities over the next two years.
Almost 20% of UK’s digital
workforce is in London’s
tech clusters.
The leading beneficiary was the
London economy, which the
report estimates will see business
revenues enhanced by £48.5bn and
a net increase in jobs of 130,000
employees.
£62.4bn
Contact Details
London
Andrew Groves
020 7297 6274
[email protected]
www.bidwells.co.uk
Increased digitalisation set
to boost London economy
over next two years.
Size of London's digital economy
West End Office
Take up is down, registering its lowest
total in three years at 1.8m sq ft.
London prime rents
Location
Prime headline rent
(£psf 6/2016)
Bankside
65.00
}|
City
75.00
}|
Clerkenwell
65.00
}|
Docklands
47.50
p
Hammersmith
55.00
}|
King’s Cross
75.00
}|
Midtown
75.00
}|
Paddington
65.00
}|
Shoreditch
62.50
}|
Stratford
40.00
}|
Victoria
75.00
}|
125.00
}|
West End
Office supply (June 2016)
Average take up per annum in
West End market since 2010)
12.5% p.a
Growth in secondary West End rents
over past five years (2011-16)
Office demand (June 2016)
Office rents (June 2016)
Take up
Grade A
2nd hand good
10 yr average
Grade A
2nd hand good
Available rate (rhs)
Availability 000’s sq ft
Availability rate
4.2m sq ft
4.3m p
5% p
(h2 2016)
Take up 000’s sq ft
1.8m q
Prime £psf Secondary good £psf
Secondary poor £psf
Annualised growth rate
£125.00 }|
£90.00 }|
£70.00 }|
1.7% p.a
Our view on London Offices | Page 2