Real Estate Movers and Shakers | London Office Relocation Trends 2022

Key Findings

• There were 59 new market entrants (new businesses and those relocating from outside London) in 2021. The majority of new entrants came from the media and technology sector (17), followed by legal and professional services businesses (13). In terms of size band, 25 of the 59 new entrants acquired space in excess of 10,000 sq ft.
  
  
• When looking at just the movers (excluding new entrants and expanding occupiers), the City market had the largest net migration number of +22 occupiers (104 moving into the market against 82 moving out), led by the City Core with +16 and +5 in both Southbank and Clerkenwell. In the West End, net migration totalled +10, with 91 in-movers and 80 out-movers. This was led by positive net migration in Covent Garden (+6), White City (+4) and Victoria (+3).
  
  
• Looking specifically at the 303 established companies and 59 new market entrants who leased space in 2021, 52% opted for newly built or refurbished space across Central London, equating to just below 5 million sq ft.
  
  
• The average distance moved by occupiers was 0.96 miles in 2021, largely in line with both the pre-pandemic and overall 5-year averages. On average, the retail & leisure sector relocated the furthest (2 miles), with the sector’s struggles over recent years, and exacerbated by the pandemic, resulting in retailers being prepared to move further and into different areas of London, seeking better value for money in terms of rents, size and grade of office space to suit their specific requirements.
  
  
• Moving an average of 1.8 miles, government & public sector occupiers continue to be footloose and willing to relocate further afield from their previous office location. In contrast, insurance, banking, and finance firms relocated closer to their previous location, moving just under half a mile in 2021.