Central London office take-up was muted during Q1 2024, totalling 2.47m, but activity remaining in key markets, with the City accounting for over 60% of take-up in Q1. A rise in prime rents across both City and West End continues to highlight occupier demand for best in class space.
Key findings from our Q1 2024 report indicate that:
- Take-up in Central London totalled c. 2.47m sq ft in Q1 2024, a decrease of 33% quarter-on-quarter.
- Grade A leases accounted for over 70% of all transactions during Q1 2024, and continues to highlight occupier demand for best in class assets.
- Prime rents climb to record high’s, with West End increasing to £155 psf and City rising to £77.50 psf.
- Supply reached 27.35m sq ft at the close of Q1 2024 which remains in line with the five-year average, and only marginally up on Q4 2023. Vacancy in Q1 2024 was 9.46%, continuing to widen the gap between the ten year average.
- Central London investment volumes totalled £1.6bn in Q1 2024, an increase of 22% quarter-on-quarter, as investors are beginning to find value in the market.
- Prime office yields stayed flat, with 4.00-4.25% in the West End and 5.75% in the City.
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