Welcome to your latest Central London office market watch, exploring insight from the City and West End office occupational markets
Contents
Across The Central London market
November recorded 492,735 sq ft of take-up across the Central London market, 22% higher than October but 43% lower than last November. This was partly driven by the West End, which saw its lowest monthly take-up since January, with no deals above 25,000 sq ft for the first time since January. In the City, take-up was supported by FTI’s pre-let of One Exchange Square, 175 Bishopsgate, EC2, a comprehensive refurbishment due to complete early next year. This brought total Central London take-up to 7.6 million sq ft, broadly in line with the five-year average, albeit 12% down on the same point last year.
Following October’s resurgence in take-up from Serviced Office Providers, November activity across both the City and West End was again led by the Insurance & Financial Services sector. This sector accounted for 38% of all take-up during the month, firmly maintaining its position as the main driver of demand. A key transaction was private equity firm Astorg’s pre-let of the second and third floors at 33 Jermyn Street, SW1, totalling 23,153 sq ft, making it the largest West End deal in November.
November also saw a record rent for 2025 achieved, with Atlas Holdings taking the 13th floor (3,620 sq ft) of Smithson Tower, 25 St James’s Street, SW1, at £240.00 per sq ft. With several further strong rents currently under offer across the market, we expect that by year-end, prime rental growth will align with Savills forecasts of 4.0% in the West End and 5.5% in the City.
Supply remained stable in November, with the vacancy rate holding at 7.7%, unchanged from October, and we anticipate this stability will continue in the near term. Tenant supply increased by 2.5% month‑on‑month but still sits near one of its lowest levels in a decade. This reflects the gradual return of unlet tenant space to landlords, combined with limited demand for second‑hand Grade B accommodation.
Looking ahead, demand remains resilient, with 13.2 million sq ft currently active across Central London and 2.7 million sq ft under offer, providing optimism that a strong December could bring full‑year take‑up broadly in line with last year and ahead of the five‑year average. In terms of which sectors are likely to lead activity in the coming months, both Professional Services and Insurance & Financial Services are at the forefront, each representing 27% of current demand. Within these sectors, demand is being driven particularly by law firms, as well as accounting and asset/investment management occupiers.
City Highlights
West End Highlights
Large Occupiers Are Committing to Office Space Earlier Than Ever
The City office leasing market is seeing a notable shift among occupiers requiring over 100,000 sq ft. These firms are committing to new space significantly earlier than in previous years, driven by a constrained development pipeline and the need to secure best-in-class offices. Data shows that the average lead time before lease expiry for these large occupiers has increased steadily. In 2022, commitments were made an average of 2.87 years ahead of LEX. This dipped slightly in 2023 to 2.50 years, but surged in 2024 to 3.65 years, and in 2025 reached 4.02 years.
Looking forward, the drivers behind this trend remain firmly in place. The development pipeline is constrained, with fewer new schemes coming forward, and demand for best-in-class space continues. Occupiers with large footprints have limited options, prompting them to start their search earlier and secure space well in advance. Already, across Central London, 21% of all refurbishments and developments over 150,000 sq ft scheduled for 2026–2029 have been pre-let, with a further 4% currently under offer, a clear sign of what’s to come.
This dynamic is also expected to support prime rental growth, with forecasts pointing to an average increase of 3.9% per year between 2026 and 2029 in the City. As competition intensifies for limited best-in-class space, landlords are likely to maintain pricing power.
Interestingly, occupiers in the 50,000–100,000 sq ft range have not shown the same shift in commitment timing. These firms typically have more flexibility and a broader range of options, meaning they can afford to wait longer before making decisions. For the largest occupiers, however, scarcity of suitable space means early engagement is no longer optional; it’s essential.
As the development pipeline remains constrained and demand for best-in-class space persists, this trend of early commitment is set to continue, shaping both leasing strategies and rental growth in the years ahead.
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