The EG’s London Office Market Analysis identified GKRE as 16th in the list of top 25 London acquisition agents. The 118,995 square feet we acquired for clients showing once again the increasing importance of the flexible space sector to the office market as a whole.
As the only specialist agent in this sector we have overseen its rise from a niche part of the market to its current status as a key component within it. We expect this to continue over the coming year as the demand for flexible space, from traditional serviced offices to co-working, increases across London and over the rest of the UK.
The deals we secured for clients last year straddled all parts of the capital and included the acquisition of 28,370 in Mappin House, W1 for Regus subsidiary Spaces, 14,084 square feet in High Holborn for The Space, 25,000 in Brook Street for Halkin Management and 6,444 square feet in Mayfair for LEO.
As well as these acquisitions we were also involved in two of the sector’s major deals of 2015: the sale of the 22-centre Ventia portfolio and the sale of the 16-centre Reflex Business Centre portfolio.
The final quarter of 2015 saw the busiest West End market since 2002, with take up of almost 1.4m square feet. This was in contrast to the sluggish start to last year across London which contributed to lettings being down some 500,000 square feet compared to 2014.
The sharp hike at in Q4 2015 gives us optimism for this year not just in the office sector but more specifically in the flexible office market.
One trend we expect to see more of is the demand for landlords in prime locations and trophy buildings for flexible space operators as part of their tenant mix. This is a step change compared to previous years and shows that flexible space has been accepted as a part of the investment market in its own right. You can read more about this in an article dated 8 January 2016 that appeared in Property Week – The rise of flexible workspace in London’s landmark buildings.