Central London office analysis

Type Research

Date 01/09/2017

Our quarterly review of the central London office occupier and investment markets.

Our latest review of the central London office market looks at activity in central London during the third quarter of the year.

Central London take-up for Q3 2017 totalled 2.4 million sq ft, 10% up on the previous quarter, but 4% down on the five-year quarterly average of 2.6 million sq ft. This brings take-up for the first half of the year to 6.7million sq ft, which, is 6% up on the corresponding period last year.

There is currently 10.4 million sq ft available across central London, increasing from 10.3 million sq ft as of the end of Q2 2017. Since this time last year, the amount of available space has increased by 22% with 1.9 million sq ft more on the market than this time last year.

Central London prime rents remained stable during the quarter, after four successive quarters of rental falls. Prime rents were down 4.6% on the year and are now down to levels last seen at the end of 2014.

During Q3 2017, central London investment totalled £4.1 billion across 32 deals, 6% up on the first quarter and double the corresponding quarter in 2016.