Welcome to the London Office Space Commercial Property Guides, where you will find detailed stats, trends and market analysis of the commercial property and office market in London. Use the links on the left to access the guides or view snippets below.
London's Office Rental Market - Trends for 2025
In 2025, the central London office market emphasises quality and flexibility. Companies prioritise sustainable Grade A office space, with 56% of 2024 leasing activity targeting BREEAM-rated buildings, driven by intensifying ESG goals. Hybrid work fuels demand for flexible leases and coworking space, with 54% of tenants seeking collaborative setups. The Insurance & Financial Services sector leads, accounting for 34% of 2024’s 3.2 million sq ft take-up, followed by Tech & Media at 16%. A tight supply, with a 7.5% vacancy rate and only 3.87 million sq ft of new space, pushes prime rents higher. Pre-let projects like One Olympia show confidence, with 42% of 2025’s pipeline secured. Foreign investment (over 70% of buyers) and emerging hubs like Canada Water fuel growth.. Read more...
London's Office Rental Market - Trends for 2024
In 2024, the central London office market shifted towards hybrid work and quality office space. Q1 take-up hit 2.47 million sq ft, up from 2.1 million in 2023, but mid-year leasing activity dipped 2%. The vacancy rate rose to 9.5% city-wide, with the West End at 7.5%. Financial services led transactions at 36%, followed by the professional services sector (29%) and tech/media (17%). Prime rents ranged from £32.5/sq ft in Docklands to £150/sq ft in Mayfair, with Grade A space averaging £79/sq ft in the West End and £66/sq ft in the City. Investment favoured smaller, ESG-enabled properties. Construction focused on large-scale developments, totalling 15.86 million sq ft. With active demand at 12 million sq ft and limited new space, under-supply looms by 2026. Read more...
London's Office Rental Market - Trends for 2023
In 2023, London’s office rental market faced a supply crunch and heightened demand for sustainable office space. With 13.6 million sq ft under construction, 9 million sq ft was delivered, over 50% targeting BREEAM ‘Outstanding’ or ‘Excellent’ ratings. Vacant space fell 5.6%, pushing flexible office rents to £750/month, up 1.1%. The West End led with 10 million sq ft in developments, 12% pre let. Flexible workspaces surged, with desk costs up 3.4% to £690/month. J.P. Morgan forecasted a 38% demand increase for prime offices by 2030, with rents potentially rising 10% annually as vacancy rates near zero by 2025. Developer confidence drove £1.8bn in transactions, despite economic pressures. ESG and shorter leases favoured quality space across Central London. Read more...
London's Office Rental Market - Trends for 2022
In 2022, the central London office market saw a flight to quality post-pandemic. Q2 take up reached 3.8 million sq ft, 24% above the long-term average, led by the professional services sector (34%), business services (19%), and financial services (11%). The vacancy rate fell to 8.2%, with availability at 24.2 million sq ft. Grade A prime rents averaged £118/sq ft in the West End, £75/sq ft in the City and South Bank, and £80/sq ft in Midtown, where vacancy was lowest at 4.7%. Pre let activity was robust, with 49% of new space taken up. Investment reached £2.6 billion in Q2, with 71% from foreign buyers. A two-tier market emerged, prioritising quality, sustainable office space in prime locations. Read more...
London's Office Rental Market - Trends for 2021
In 2021, London’s office rental market faced challenges from Brexit and the COVID-19 pandemic, impacting the central London office market. The shift to remote work slashed take up rates by nearly 50% below the long-term average, prompting businesses to rethink real estate strategies, often dropping assets or skipping lease renewals. Despite this, demand for co-working and hybrid office space grew, reflecting key trends in flexibility. The vacancy rate rose as leasing activity slowed, particularly in the City and West End.. Read More...
London's Office Rental Market - Trends for 2020
In 2020, London’s office rental market started with optimism after a stable 2019, with 12 million sq ft under construction and high pre let activity. Analysts anticipated sustained demand, construction surges, and falling vacancy rates in the central London office market. However, the pandemic disrupted forecasts, reducing leasing activity and stalling take up across prime locations like the West End and City. Read More...
London's Office Rental Market - Trends for 2019
In 2019, London’s office rental market ended 2018 strongly, with record take up levels—the highest since 2010—and low vacancy rates, signalling robust demand across Central London. However, 2019 saw a mixed outlook: rents for mid-range office space declined, while prime locations maintained sustained demand. Availability hit record lows in prime areas like St James’s and the West End. Read More...
London's Office Rental Market - Trends for 2017
In 2017, London’s office rental market thrived despite Brexit uncertainties. Key trends included diverse occupier profiles and heightened demand for flexible office space, such as co-working space in the City and West End. Shorter lease terms with tenant-only break clauses gained traction. Relocations surged due to new business rates, boosting leasing activity in prime locations. Read More...
London's Office Rental Market - Trends for 2016
In 2016, London’s office rental market maintained low vacancy rates at 4%, except in St James’s, Clerkenwell, and Holborn. The City led take up at 43%, followed by the West End and Docklands. Prime rents hit £125/sq ft in Mayfair and St James’s, while the City ranged from £60-£93/sq ft. Lower rents in Docklands and Shoreditch (£33-£53/sq ft) attracted cost-conscious tenants. Read More...
London's Office Rental Market - Trends for 2015
In 2015, the central London office market saw robust growth. Key trends included continuous prime rental growth, declining vacancy rates, and stable prime office yields. The office sector across London benefited from strong demand, particularly in prime locations like the West End and City, driving leasing activity and solidifying market confidence. Read More...
London's Office Rental Market - Trends for 2014
In 2014, London’s office rental market saw take up rise 45%, the highest since 2010, with vacancy rates dropping to 6%. Foreign investors dominated, accounting for 70% of purchases in the central London office market. Prime rents were projected to grow 3-6% over five years, with prime office yields rising by 25 bps. Prime locations like the West End saw heightened demand. Read More...
London's Office Rental Market - Trends for 2013
In 2013, London’s office rental market forecasted 3% prime rental growth, despite job losses in the financial services sector. Foreign investment, comprising 74% of Central London’s market, drove £9.6 billion in transactions. Demand for prime office space remained strong, particularly in the West End, supporting sustained demand and investment activity. Read More...
London Commercial Property Development - Trends for 2013
As in past years, the level of foreign investment in London's commercial property continues to skyrocket. This is hardly a new trend, with London's prime property having beaten both New York and Paris in prices every year since 2009. London Central Portfolio, property managers who have delved into this matter, say that this is not like any housing bubble, which may burst at any moment, but has remained a stable place to invest. Increased competition in the purchase of office buildings in London's West End is predicted to give rise to higher rental prices as the area regains its claim of being the most expensive of all the office markets across the globe. As well as the obvious benefits this brings to office rentals, reclaiming this title makes London a 'must-have' spot for retailers, hotels and other industries.
However, despite the increased confidence and growth in certain property-driven sectors, it is thought by some of the experts in the field that rental prices will increase by little compared to 2012: Knight Frank Research predicts an annual growth of 1%, while Savills believes 0 - 1% will be the maximum. Read More...
2012 Trends for Central London's Commercial Property Rentals Market
In 2012, the central London office market remained stable despite economic challenges. Foreign investors, accounting for 65% of buyers, invested £4.4 billion in Q2, which is 56% of the quarterly total, and most of this was spent on commercial office space.
London offices remain one of the most sought-after property types - more was spent on offices, in Central London, than was spent on both retail and industrial property combined.
The market saw an 8% increase in office spending, with prime locations like the West End and City driving investment activity and sustained demand. Read More...
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