Summary and analysis of Central London's current office real estate market conditions.
Insight
21 May 2025
Central London Office Market Dynamics, Q1 2025
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Leasing activity was robust, with volumes ahead of the same period in 2024. The service sector was the primary driver, with flexible workplace providers recording their most active quarter since mid-2021.
Active demand remains well above the long run average, and was characterized by a significant uptick in large-scale requirements. The number of active requirements for spaces of 100,000 sq.ft. or more reached a record high of 36 at quarter end.
Prime rents increased for the third consecutive quarter and reached £160.00 per sq.ft., which reflected annual rental growth of more than 14%.