Office investment activity in the South East and Greater London rose 12% year-on-year in Q3 2026, according to the latest data from Knight Frank.
Office investment reached £389m in Q3, the strongest quarter of the year so far and 12% above Q3 2025. Year-to-date volumes rose 4% to £915m and of £823m of office stock currently being marketed, £454m is already under offer, pointing to further transaction activity before year-end.
Office take-up reached 651,728 sq ft, up 1.1% on Q2 2026. While activity remains below 2025, which was the region’s strongest leasing year since 2019, businesses continue to make significant commitments. Nearly two-thirds of Q3 take-up was Grade A, while named demand of 4.48m sq ft is more than double the 2m sq ft leased so far this year.
Two Hammersmith deals accounted for almost a quarter of Q3 take-up, with JD.com acquiring the entire 127,120 sq ft Systems building at 43 Brook Green for its own occupation (pictured) – the largest occupier transaction of 2026 in the region.
Vacancy in newly built offices stands at just 1.52%, despite overall market vacancy rising from 11.03% to 11.62%. Total availability increased by 1.02m sq ft to 18.6m sq ft.
Roddy Abram, head of South East and Greater London offices at Knight Frank, said: “Leasing activity edged up in Q3, with occupiers continuing to make major commitments to the right buildings. Demand is coming from a diverse range of businesses, from global e-commerce groups to advanced manufacturers and quantum computing companies. The headline vacancy rate disguises an increasingly two-tier market.
“Recent completions have increased choice temporarily, but the development pipeline remains limited relative to the depth of occupier requirements. That imbalance will constrain choice for businesses seeking modern offices and support prime rents in the strongest locations. With large requirements progressing, we expect further major commitments in the final quarter.”
Simon Rickards, head of national offices capital markets at Knight Frank, added: “Q3 was the strongest quarter of the year for investment, with volumes now running ahead of 2025. Buyers are committing to a wide range of opportunities, from an owner-occupier paying more than £700/sq ft in Hammersmith to investors acquiring business parks at attractive yields.
“That breadth of activity demonstrates that capital is available where assets are priced realistically and offer a credible investment case. With a substantial volume of stock already under offer, we expect a stronger final quarter. Investors remain selective, but attractive pricing, secure income and repositioning opportunities continue to draw buyers into the market.”
