Quarterly Review: Q1 2021

Quarterly Review: Q1 2021

With virus case numbers falling back over recent months in the UK and restrictions set to ease further by the end of June, economic activity is likely to recover strongly in H2.

Despite government advice remaining to work from home if you can, the proportion of those present in the office in April was higher than at any other point since the start of the pandemic.

Central London office take-up was down almost 40% y/y to just 1.2m sq. ft. in Q1 2021, with falls in the City and West End broadly similar.

The strong rebound in office investment in the capital city at the end of last year faded in early 2021 with £1.3bn transacting in Q1, down from £4.3bn in Q4.

Across the regional office market and unlike in London, office supply has remained in check. In particular, supply in Leeds, Liverpool and Cardiff looks tight.