Central London office take-up slowed in Q2 2023, owed to ongoing occupier uncertainty but also a lack of available high quality Grade A stock. Pre-let activity has dominated larger deals as occupiers continue to hunt for high quality office space. Subsequently, prime office rents remain at record levels in many cases.
Key findings from our Q2 2023 report indicate that:
- Take-up in Central London totalled c.4.41m sq ft in H1 2023, down 27.6% year-on-year.
- Pre-let activity has dominated larger leasing deals, reinforcing the ongoing demand for best-in-class office space.
- In turn, prime rents have remained at record high levels, led by West End rents at £145 per sq ft.
- Available office supply edged up in Q2, resulting in a slight uptick in Central London vacancy to 9.2%, although significant divergence between submarkets exists.
- Central London investment volumes reached £1.3bn in Q2, down 64% quarter-on-quarter, as uncertainty regarding inflation and interest rates persists.
- Prime office yields have moved out to 4.00% in the West End and 5.25% in the City, representing a quarterly increase of 15bps and 50bps respectively.
Download the full report below.
