Central London take-up is being driven by significant pre-let’s, particularly enhancing activity levels in the West End, which are now on par with the City, a trend not seen since the end of 2022.
Investment liquidity remains constrained by high debt costs, but sentiment has improved noticeably in recent months. The improved economic backdrop and a robust leasing market are resulting in deeper bidding pools for prime buildings.
Key findings from our Q3 2024 report indicate that:
- Take-up in Central London totalled c.2.75m sq ft in Q3 2024, an increase of 13.9% quarter-on-quarter, and remaining above the five-year quarterly average of 2.56m sq ft.
- Grade A leases accounted for 75% of all transactions during Q3 2024, with c.720K sq ft of this space being pre-let.
- Prime rents remain at record highs, with the City increasing to £82.50, an annual increase of 13.8%, and the West End staying at £160 psf, an annual growth rate of 6.7%.
- Available office supply reached 28.06m sq ft at the close of Q3 2024 which is notably above the five-year average of 27.20m sq ft. Vacancy in Q3 2024 was 10.1%, increasing the gap between the ten-year average of 9.0%.
- Central London investment volumes totalled £1.0bn in Q3 2024, a 12.0% increase quarter-on-quarter, bringing the year-to-date total to £3.4bn.
- Prime office yields edged down for the West End, to 4.0%, and the City saw movement to 5.5% during Q3 2024.
Download the full report.
