Thu, 10/11/2022 - 12:00
· 1 min read

Central London Office Market Update Q3 2022

Central London office demand has shown levels of consistency in Q3, totalling 3.15m sq ft, with pent up demand playing a significant factor. This brings the year to date take-up figure to 9.25m sq ft.

Despite demand showing over-all consistency post pandemic, the macro-economic uncertainty could impact take-up figures in H1 of 2023.

Key findings from our Q3 2022 report indicate that:

  • Take-up in Central London totalled 3.15m sq ft in Q3.
  • The office market has seen consistent levels of recovery post pandemic, largely due to pent up demand, showing a q/q marginal decrease of 1.4% but an 18.8% increase when compared to Q3 2021.
  • Supply increased marginally by 2% to 19.97m sq ft and the Vacancy Rate has stabilised at 8.8%.
  • The Central London office market saw £3.2bn of investment transactions in Q3 – 5% down on Q3 2021 and 4% below the 10-year Q3 average.
  • Year-to-date volume stands at £11.1bn, the highest Q1-3 figure since 2019.
  • The average lot size reached a record high of £141m. Just 23 deals completed over the quarter, the lowest quarterly deal count since Q2 2022.
  • Investors have become very cautious as financial conditions become increasingly challenging. Rapidly rising debt costs and risk-free rates have made price discovery elusive and put considerable upward pressure on yields.


Click to read Central London Office Market Update Q3 2022

Central London Office Market Update Q3 2022