London Offices Market Summary - Q4 2024
Core Content
This report provides a quarterly snapshot of the London office market, focusing on leasing and investment activity across key submarkets. The data highlights trends in take-up, availability, vacancy rates, prime rents, and yields for the period ending December 31, 2024.
Key Themes
- Highest deal flow since Q2 2018: The market experienced above-trend levels of take-up, indicating strong demand for office space.
- Tight availability of prime space: Core submarkets continue to face limited supply of prime office space.
- Stable yields and increased investment volumes: Yields remained stable, leading to a rise in investment activity.
Submarket Key Indicators
| Submarket |
New/Refurb Vacancy Rate |
Vacancy Rate |
Prime Rent (PSF) |
Quarterly Change |
Rent Free Periods (Months) |
| Aldgate/Whitechapel |
6.4% |
13.3% |
£57.50 |
▲ |
27 |
| City Core |
3.8% |
7.6% |
£95.00 |
▲ |
24-27 |
| Clerkenwell/Farringdon |
9.7% |
14.7% |
£92.50 |
▲ |
24 |
| Midtown |
3.7% |
7.7% |
£85.00 |
▲ |
27 |
| Southbank Core |
6.4% |
9.2% |
£82.50 |
▲ |
24-27 |
| Vauxhall/Battersea |
16.9% |
17.1% |
£60.00 |
▲ |
24-27 |
| Canary Wharf |
6.1% |
13.5% |
£57.50 |
▲ |
27-30 |
| Rest of Docklands |
5.0% |
9.8% |
£32.50 |
▲ |
30 |
| Stratford |
22.7% |
28.2% |
£48.50 |
▲ |
27 |
| Bloomsbury |
3.5% |
5.9% |
£82.50 |
▲ |
24-27 |
| Fitzrovia |
5.7% |
10.5% |
£95.00 |
▲ |
24 |
| King's Cross/Euston |
5.5% |
6.7% |
£90.00 |
▲ |
24-27 |
| Marylebone |
4.4% |
6.7% |
£105.00 |
▲ |
24 |
| Paddington |
4.1% |
5.8% |
£85.00 |
▲ |
24-27 |
| Soho |
2.5% |
3.8% |
£100.00 |
▲ |
24 |
| Strand/Covent Garden |
9.6% |
11.9% |
£90.00 |
▲ |
24-27 |
| Victoria |
3.1% |
4.1% |
£92.50 |
▲ |
24-27 |
| West End Core |
2.7% |
4.6% |
£160.00 |
▲ |
21 |
| White City |
17.0% |
23.5% |
£57.50 |
▲ |
24-27 |
Key Leasing Deals (City & Southbank)
| Building |
Sq ft |
Occupier |
Rent (PSF) |
| 10 Gresham Street, EC2 |
110,862 |
Moody's Shared Services |
Confidential |
| The Giltspur, EC1 |
91,127 |
Octopus Investments Ltd |
Confidential |
| One Millenium Bridge, EC2 |
85,305 |
Alix Partners |
Confidential |
| Peterborough Court, EC4 |
75,917 |
Morgan Lewis and Bockius UK LLP |
£87.00 |
| Peterborough Court, EC4 |
63,915 |
Just Group Plc |
Confidential |
Key Leasing Deals (Docklands & Stratford)
| Building |
Sq ft |
Occupier |
Rent (PSF) |
| 1 Canada Square, E14 |
44,544 |
UCL |
£60.00 |
| Type Building, E15 |
10,604 |
Study Group Limited |
£39.50 |
| 1 Westferry Circus, E14 |
10,000 |
University of Wales Institute |
Confidential |
| 1 Canada Square, E14 |
5,500 |
The General Optical Council |
£65.00 |
Key Investment Deals
City & Southbank
| Building |
Price |
Capital Value (PSF) |
Yield |
Purchaser |
| 90 High Holborn, WC1 |
£180 m |
£991 |
6.60% |
Polus Capital |
| The JJ Mack Building, EC1 |
£140 m |
£1,351 |
5.85% |
Ashby Capital LLP |
| The Relay Building, E1 |
£44 m |
£424 |
11.46% |
Harbour Group |
| 1 Princes Street, EC2 |
c.£35 m |
£442 |
- |
Criterion Capital |
| 10-4 Pentonville Road, N1 |
£26 m |
£474 |
- |
ZURU |
Docklands & Stratford
| Building |
Price |
Capital Value (PSF) |
Yield |
Purchaser |
| 11-12 St James's Square, SW1 |
£162 m |
£1,967 |
- |
Ellison Family |
| 45 Pall Mall, SW1 |
£136 m |
£2,268 |
4.33% |
Ares |
| 3 St James's Square, SW1 |
£126 m |
£2,473 |
4.05% |
Realty Income Corporation |
| 30 Golden Square, W1 |
£72 m |
£2,224 |
4.49% |
Legal & General |
| 350-354 Oxford Street, W1 |
£37 m |
£2,869 |
5.35% |
Ares |
Investment Market Trends
City & Southbank
- Turnover: Increased by 38.6% over 3 months, reaching £0.73 bn.
- Availability: Decreased by 45.4% over 3 months, to £1.28 bn.
- Under Offer: Increased by 89.8% over 3 months, to £0.94 bn.
- Yield: Remained stable at 5.25%, with a long-term average of 4.36%.
Docklands & Stratford
- Turnover: £0.00 bn for the quarter, with a long-term average of £0.11 bn.
- Availability: Increased by 194.8% over 3 months, to £0.27 bn.
- Under Offer: Decreased by 100.0% over 12 months, to £0.00 bn.
- Yield: Stable at 7.50%, with a long-term average of 5.21%.
West End
- Turnover: Increased by 58.6% over 3 months, reaching £1.25 bn.
- Availability: Decreased by 59.4% over 12 months, to £1.09 bn.
- Under Offer: Increased by 65.9% over 12 months, to £0.98 bn.
- Yield: Stable at 3.75%, with a long-term average of 3.56%.
Development Pipeline
- City & Southbank: A significant development pipeline with pre-let space under construction.
- Docklands & Stratford: A notable increase in development activity, with a growing pipeline of space.
- West End: A moderate development pipeline, with some projects under construction.
Technical Notes
- All floorspace figures are quoted in sq ft net.
- Take-up refers to space let, pre-let, or acquired for occupation during the quarter.
- Availability includes space available for immediate occupation and space under construction to be completed within six months.
- Demand refers to named requirements for over 10,000 sq ft.
- Under construction figures include developments of over 20,000 sq ft currently underway.
- Investment figures include transactions of £1 m and above, primarily from office usage.
Contact Information
