THE RACE FOR SPACE

8 CUSHMAN & WAKEFIELD 9 RACE FOR SPACE • For schemes under construction , the average size for the same time period was 62,423 sq ft. • For off-plan pre-lets , the average transaction size was 225,140 sq ft. • The average size of Central London pre-lets under construction has fallen by 20% since last year, although this remains in line with the 10-year average. • The average size for Central London off-plan pre- lets increased by 178% in the last twelve months, which is 51% ahead of the 10-year average. The average size of all pre-lets across Central London since 2009 is 91,676 sq ft. PRE-LET SIZE ANALYSIS SO WHAT? There has been a decline in the average size of pre-lets under construction while off-plan pre-lets are increasing in size. Smaller pre-let transactions can help achieve a more balanced tenant profile which could drive the formation of a community, whilst increasing asset management opportunities. This presents a potential conundrum for developers – designing a scheme for large occupiers seeking off-plan pre-lets may compromise the attractiveness to tenants looking to acquire smaller units post-completion. Figure 3 Central London pre-lets by size band (2009-2018) 0 20 40 60 80 100 120 300,000+ 150,000- 299,999 125,000- 149,999 100,000- 124,999 75,000- 99,999 50,000- 74,999 20,000- 50,000 Number of transactions Off plan Under construction Figure 5 City and East London pre-lets by size band (2009-2018) Source: Cushman & Wakefield 0 10 20 30 40 50 60 300,000+ 150,000- 299,999 125,000- 149,999 100,000- 124,999 75,000- 99,999 50,000- 74,999 20,000- 50,000 Number of transactions Off plan Under construction Figure 4 West End pre-lets by size band (2009-2018) 0 10 20 30 40 50 60 300,000+ 150,000- 299,999 125,000- 149,999 100,000- 124,999 75,000- 99,999 50,000- 74,999 20,000- 50,000 Number of transactions Off plan Under construction