The Central London office market wrapped up 2024 on a strong note, with a significant boost in leasing activity and investment, according to new findings from CBRE. Take-up in the final quarter reached 3.5 million square feet, marking a 16% increase from the previous quarter and surpassing the long-term Q4 average by 3%.
Investment volumes also saw an upward trend, totaling £1.6 billion in Q4. This represented a 22% quarter-on-quarter rise and contributed to a full-year total of £4.9 billion. While this figure was 7% lower than the previous year’s total, it signals a stabilizing investment environment.
The availability of office space continued to decrease, dropping 7% from the previous quarter, with a notable reduction in secondhand space.
The vacancy rate in Central London fell to 7.6% by the end of Q4, down from 8.0% in Q3, reflecting sustained demand for office space across the capital. All submarkets saw a reduction in availability, except for the West End, which experienced a 6% rise.
Experts highlight the resilience of the market, pointing to strong leasing and investment activity as signs of confidence in the value of office space in Central London. With 42% of the 14.5 million square feet currently under construction already let or under offer, demand for high-quality office space remains robust.
