Central London office vacancy rates fell 0.2% to 6.9% in Q3 2024 following an uptick in leasing activity, according to the latest data from Avison Young.
In Q3, office take-up reached 3.2m sq ft across Central London, with activity in the West End hitting more than 1.1m sq ft – 87% above the 10-year quarterly average.
Take-up in the City reached 1m sq ft – a 44% increase on the previous quarter and 15% above the 10-year average – and in Midtown take-up hit 254,000 sq. ft, which was 39% higher than the previous quarter and 52% above the 10-year quarterly average.
Investment activity continued to be subdued in Q3, with volumes of £564.85m recorded.
Dominic Amey, principal and managing director, London markets at Avison Young, said: “Falling vacancy rates, and take up across London being substantially above 10-year average, speaks volumes about the ongoing strength and attractiveness of London as a global business destination, and surely lays to rest any further debate about the future of offices.
“It’s clear to see that businesses want and value office space. We believe that Q4 will be an equally active quarter, resulting in a very positive year end take-up figure. In contrast, London’s investment market has been remarkably quiet, with some of the lowest trading volumes on record. However, it’s evident that investor confidence is returning, and there is no doubt that trading volumes will improve through Q4, and that we will see a much more active 2025, buoyed by lower interest rates and the exceptional levels of tenant demand.”
