Central London office transactions totalled 2.56m sq ft in Q1 2023, with occupier uncertainty reducing the number of leases from previous quarters.
Prime rents continue to remain high, even record breaking in certain circumstances, and remaining stable to begin the year.
Key findings from our Q1 2023 report indicate that:
- Take-up in Central London totalled c.2.56m sq ft in Q1.
- Take-up levels are 13.5% down when compared to Q4, are 10% less than Q1 2022.
- The Central London office market is remaining resilient, with over 300 transactions throughout the quarter, with a focus on smaller leases as the occupier confidence remains lower due to economic uncertainty and rising cost.
- Supply has increased to 18.5m sq ft, with an overall vacancy rate of 8.4% for Central London.
- The Central London office market rebounded and reached £3.2bn of investment transactions in Q1, but remains low in comparison to Q1 last year, showing a reduction of 42%.
- Asia-based investors are continuing to show interest in trophy assets within the market, and inward investment from APAC reached £1.5bn.
With an upcoming development pipeline with potential to be the largest volume of deliveries in nearly 20 years, Central London’s Grade A stock remains prominent and necessary.
Download the latest report below to find out more.
