This was the biggest City office deal in the last quarter

 
Helen Cahill
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Amazon has signed-up to a lease in the City (Source: Getty)

Amazon made the biggest office deal in the City in the last quarter, taking 47,101 sq ft of space in Beaufort House.


Research from BNP Paribas Real Estate showed Amazon made the biggest City move in a period when lease length fell from 9.5 years to 7.8 years as occupiers sought more flexibility.

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Investment in London offices in general hit £3.74bn in the second quarter of 2016, up by 19 per cent as compared with the first quarter. This made total volumes for the first half to £6.88bn.

Asia Pacific investors were particularly active in the City, having made up 92 per cent of the capital spent so far this year.


Vacancy rates rose from 4.72 per cent in the first quarter to 5.43 per cent in the second quarter. BNP Paribas said this was "driven by rationalisation on the part of occupiers as well as 2016 developments entering supply".

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In retail space, the largest deal was for the freehold of Zara's Oxford Street building, 61-79 Oxford Street. China Estates bought the building from BA Pension Fund for £183m at a yield of 2.5 per cent.

Retail investment was up by 47 per cent as compared to the first quarter, hitting £553m, and there was "little movement in vacancy rates" BNP Paribas said.

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