Central London leasing activity hit 12.4m sq ft in 2014 – the highest volume recorded since the 12.7m sq ft total in 2007 – according to Cushman & Wakefield.
The figure is 15% ahead of the 2013 total.
The City market recorded its highest volume for 15 years, at 7.2m sq ft, while the West End reached 4m sq ft.
Docklands take-up doubled in the year to exceed 1m sq ft for the first time since 2010.
High-profile deals included Amazon’s 431,000 sq ft prelet at Principal Place, EC2, as revealed by Estates Gazette, and Omnicom’s 376,000 sq ft lease at Bankside 2 and Bankside 3, SE1.
Société Générale signed the largest prelet in Q4, committing to 280,000 sq ft at 1 Bank Street, E14. A further seven prelets of more than 100,000 sq ft were signed over the course of the year.
C&W also noted a resurgence in banking and financial services activity, as well as professional services.
Media and technology accounted for 28% of leases, with finance a further 22%.
The serviced office sector saw a year-on-year increase of 78% to 1.2m sq ft.
The agent predicted that low levels of speculative development across the city would squeeze supply in 2015, in a year marked by prelets and increasingly footloose occupiers.
C&W head of West End office agency Andy Tyler said: “It is clear that the recovery in the London office market has built up momentum, and that improved business sentiment is filtering down to all business sectors. This more diverse source of leasing suggests a more robust and sustainable office leasing market, and we fully anticipate this momentum to carry through into 2015.”
Head of City office agency Andrew Parker said: “The high level of take-up seen in 2014 has insulated the market from any significant increase in supply. However, with development completions in the City of London expected to be at their lowest levels for eight years, supply shortages are anticipated and many occupiers will be forced to compromise or to take a prelet. This imbalance is anticipated to result in a sharp rise in rental values during the next 12 months.”
