New research from international real estate advisor Savills shows that the final quarter of 2025 saw deals for 2.6m sq ft of Central London office space, an increase of 36% on the previous quarter.
Four of the deals in Q4 were for more than 100,000 sq ft, taking the number of transactions of that size to a three-year high.
Total take-up for offices in Central London reached 9.44m sq ft in 2025, down 7% on 2024 and 9% on the 10-year average.
Despite the lower take-up, there was a total of 12.4m sq ft of requirements at the end of Q4, 35% above the 10-year average. Supply levels in Central London were 19.5m sq ft, equal to a vacancy rate of 7.5%, having dropped by 30 basis points during the quarter.
Rents across Central London continued to grow. The average prime rent in the City of London grew by 7% to £105.26 – the first time the average has hit three figures. The equivalent in the West End stood at £166.61, up 6.1% on 2024.
Philip Pearce, Executive Director of Savills Central London Agency team, says: “The take-up figures for the year were in line with our projections, as occupiers become more selective with their space and are increasingly happy to extend their lease until the right building becomes available. With a constrained supply pipeline, there is more competition for the best buildings, as evidenced by the rising rental figures across the City and West End.”