Office leasing activity in Central London was up 6% in Q1 2026 compared with the same period in 2025, according to new data from Savills.
Of the 2.2m sq ft of deals transacting in Q1, pre-lets accounted for around a third of the space acquired, with Grade A space representing 92% of total take-up.
Active demand for space in Central London reached a new record high of 14.6m sq ft in Q1 2026 – 57% above the 10-year average – and occupiers remain optimistic about their future space requirements, with almost half (47%) seeking to increase their footprint, according to Savills.
Rents in the City reached a new record of £160/sq ft, taking the average prime rent in the City up to £130.80/sq ft – 40% up on Q1 2025. West End prime rents remained stable year-on-year at £165/sq ft.
Investment activity in Q1 reached £1.79bn – down 37% on the five-year average and 44% on the 10-year average. Savills said there are currently £2.78bn of deals under offer across 52 assets, including eight deals of more than £100m, representing the highest amount of stock under offer for Q1 since 2022.
Philip Pearce, executive director in Savills’ Central London agency team, said: “Momentum is continuing to build in the Central London office market, with more businesses looking to grow their space contributing to improved stats on last year. We’d expect to see more deals happening throughout the rest of the year as occupiers look to take high quality space.”
Oliver Bamber, director in Savills’ Central London investment team, added: “Although total turnover is down on the short- and long-term averages, we’re optimistic that the relatively high deal count shows that there is still appetite for trades. With a high number of assets under offer, including some of the larger lot sizes, there are reasons to be cautiously positive for the rest of the year.”
