Across The Central London market

Leasing activity across Central London slowed in January, following a strong year‑end finish in December, with take‑up reaching 430,964 sq ft across 29 transactions. This was down 27% on January 2025, with activity skewed towards sub-25,000 sq ft transactions in the City Fringe. The largest transaction — and only one over 40,000 sq ft to complete in January — was Formula 1’s acquisition of 40 Broadway, SW1 (97,911 sq ft) on terms that remain confidential at present.

Space under offer remained at the same level at 2.6 million sq ft in January, with the sustained occupier preference for newly developed stock reflected by the fact that 80% of space currently under offer is in newly developed or extensively refurbished buildings. By sub-market, the City Core accounts for the largest share of space under offer at present (32%), followed by North of Oxford Street East with 18% and then the South Bank with 12%.

Despite under-offers remaining unchanged, underlying demand across Central London picked up, with active demand increasing by 12% to 13.8 million sq ft in January. This was up 51% on the ten-year long-term average, with more occupiers starting searches earlier and undertaking stay vs go exercises, particularly with fit-out cost remaining elevated. Notably, the Tech & Media sector drove much of this momentum, accounting for 25% of all new demand recorded at the start of the year. This was followed by the Insurance & Financial Services sector with 18% and then the Professional Services sector, accounting for 16% of new requirements. While the Professional Services sector as a whole ranked third in overall share, mid-sized law firms comprise the largest proportion of new demand seen since the start of the year by subsector.

Overall vacancy across Central London remained stable over the month, with the West End vacancy rate reducing by 10 bps and the City increasing by 10 bps. At 7.4%, the Central London vacancy rate remains 110 bps above the ten-year long-term average of 5.1%. We are currently forecasting that the City vacancy rate will remain at 7.1% and the West End vacancy rate will stand at 8.0% by year-end. Vacancy across the core sub-markets is expected to remain constrained, particularly for larger occupiers, with 43% of the pipeline scheduled for completion between now and 2027 already pre-let.

City Highlights

West End Highlights

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