Marylebone office take-up was below the general West End trend for the third year in a row in 2017 with a total reported activity of 276,000 square feet, which is 40% below trend.
However, the first quarter of 2018 has seen a dramatic turnaround in fortunes for the Marylebone office market with 108,250 square feet of take-up recorded. This is a 39% increase on the 2017 total. This activity has been boosted by a number of large transactions with the letting of 21,000 square feet at 33 Cavendish Square to coworking and serviced office provider i2 Offices.
Prime Marylebone rental values remained stable during this time, at around £90 per square foot, whilst secondary and refurbished office space continued to rise in value. Refurbished rents rose by 3.3% between Q4 2017 and Q1 2018 to £77.50 per square foot and secondary office rents rose by 9.1% to £60 per square foot. The majority of occupiers of offices in this area are business and professional services companies, accounting for 51% of take-up, real estate companies account for an additional 21% of take-up with the financial services industry taking up 7% of space in this time.
Supply has gradually increased over the last year with 439,540 square feet available at the end of the first quarter of 2018. Secondary space dominates the Marylebone office market, accounting for almost 60% of available office space. Grade A supply was at 182,900 square feet at the end of the first quarter of 2018 with this expected to reduce further as a result of 26,650 square feet being under offer at 1-3 Welbeck Street.
In addition, with 65% of available Marylebone office space being over 10,000 square feet, small boutique spaces in the area are hard to come by. Fortunately, here at RIB we have Marylebone offices available in all sizes whatever your needs may be. Take a look at our wide range of Marylebone offices for more information or contact one of our Commercial Lettings advisors.