Central London office analysis

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

Type Research

Date 26/07/2018

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

Central London take-up totalled 3.5 million sq ft in Q2 2018, a 41% increase on Q1 2018, a 55% rise on the same period last year and a 32% rise on the 5-year average of 2.6 million sq ft.

There is 12.4 million sq ft of availability in Central London as at Q2 2018. This was a rise on Q1 2018 at which point 11 million sq ft was available registering a 12.1% rise. Since this time last year, availability has risen a substantial 20%, primarily due to rising availability in Docklands.

Central London prime rents increased by 0.2% on last year. This was the third consecutive quarter of rental increase after five successive quarters of negative or no growth, although the rate is slowing. Prime rents are now 3.2% up on the same time last year.

Q2 2018 investment volumes totalled £5.8 billion across 51 deals, a 41% rise on the 5-year average, largely the result of several significant deals over £200 million.