Central London office leasing activity was up 29% in Q2 compared with activity recorded in the previous quarter, according to Cushman & Wakefield’s latest Central London Marketbeat Report.
The company recorded 2.13m sq ft of take-up in the second quarter with Grade A space accounting for 77% of activity – the highest quarterly share on record. In H1 2024, total leasing activity was down 21% on the 10-year average
Supply across Central London reduced during the second quarter to 27.3m sq ft – 61% above the 10-year average of 16.92m sq ft. According to Cushman’s data, active demand for Central London offices remained at record high levels of 13m sq ft in Q2
Andy Tyler, head of London office leasing at Cushman & Wakefield, said: “While historically high vacancy rates underscores ongoing challenges in the market, we’ve further observed a stabilisation in supply levels over the past five quarters. With the majority of occupiers focussed on Grade A space there is an increasing awareness that the availability of the best in class space is under increasing pressure.
“Looking ahead, the constrained development pipeline suggests a tapering of new office space entering the market. This should lead to a gradual decrease in both overall and grade A vacancy rates over the coming year, and fuel rental growth, particularly at the top end of the market.”
Heena Gadhavi, associate director, UK research and insight at Cushman & Wakefield, added: “The notable quarterly increase in Central London office leasing activity illustrates that occupier demand for assets remains strong with the increased volume of space under offer reinforcing this. In particular, appetite for eco-friendly offices is growing, as environmental requirements get stricter, and businesses look to low carbon workspaces as an efficient way to meet both ESG targets and increasing employee expectations around sustainability.”
