Across The Central London market

Leasing activity across Central London rose in February, with take‑up reaching 682,500 sq ft across 35 transactions, bringing the total for the year to 1.13 million sq ft. This was up 44% on the first two months of 2025. Take-up was weighted towards new space, with pre-lets accounting for the majority (54%) of space acquired this month, as well as 71% of space acquired being in buildings rated BREEAM ‘Excellent’ or ‘Outstanding’.

By far the largest transaction to complete was Herbert Smith Freehills Kramer’s pre-let of 268,000 sq ft at 1 Appold Street, EC2. Not only was this the largest transaction to complete in Central London since April 2025, but it also marked the largest acquisition of space by a law firm since 2022, and was signed well ahead of the tenant’s lease event in 2030. This transaction is illustrative of a wider trend we have seen in Central London in which larger occupiers are having to start their search earlier in order to secure best-in-class space in desirable locations. A recent analysis of lead time data has found that tenants who acquired over 100,000 sq ft started their search, on average, over 50 months ahead of their lease event, roughly double the length of time of those who acquired less than 50,000 sq ft.

In the West End, leasing activity was lower month-on-month, although top rents continued to be achieved. Sona Asset Management pre-let the lower three floors (31,323 sq ft) at Pegasus, Sackville Street, W1, roughly doubling the space it currently occupies at 20 St James’s Street, SW1, with the overall blended rent anticipated to be around £180 per sq ft. Similarly, the 13th floor (21,358 sq ft) at the soon-to-be-completed 105 Victoria Street, SW1 development was recently let to a confidential financial services firm, likely resulting in a new record headline rent for that market.

At 30% each, the Insurance & Financial Services and Tech & Media sectors have been the most active across Central London so far this year by number of transactions. The latter sector has made up a high level of the smaller transactions that have completed, accounting 45% of those under 10,000 sq ft. Herbert Smith Freehills Kramer’s significant pre-let, as well as Mishcon de Reya’s acquisition of 133,000 sq ft at MidCity Place, WC1, last month, has resulted in the Professional Services sector accounting for the largest share of space acquired, at 45%.

Overall vacancy across Central London fell 10 bps to 7.3%, with the West End vacancy rate reducing by 30 bps, while the City remained stable. In recent years, the vacancy rate has remained elevated partly due to secondary stock in fringe locations struggling to let. However, increasingly, these assets are gaining planning permission for change of use with notable recent examples including 255 Hammersmith Road, W6; 200 Hammersmith Road, W6; and 29 Clements Lane, EC4. This, in turn, should lead to a rebalancing of overall supply as occupiers continue to show a clear preference for higher-quality space in well-connected locations.

City Highlights

West End Highlights

EXPLORE MORE INSIGHT >

If you have any questions, please do not hesitate to get in touch via the Authors panel

_{Back to top of page}