Across the Central London market

Leasing activity across Central London fell in April, with take‑up reaching 623,048 sq ft across 33 transactions, bringing the total for the year to 2.81 million sq ft. This was down 22% on the first four months of 2025. Take-up was once again dominated by Grade A transactions, with Grade A accounting for 96% of take-up, as well as 63% of space acquired being in buildings rated BREEAM ‘Excellent’ or ‘Outstanding’.

Take-up over the month was driven by the West End market and was led by the Tech & Media sector, which accounted for 41% of the month's take-up, with the AI sub-sector leading the way. The largest transaction to complete was AI firm Anthropic’s acquisition of the 3rd-6th floor of 1 Triton Square, NW1 (158,138 sq ft) on terms that remain confidential at present. This is a trend which may well occur in future months this year, with 229,000 sq ft of space under offer to AI firms, supplemented by a growing pipeline of AI occupiers actively seeking space.

The City market saw a fall in month-on-month transaction activity, largely due to a lack of larger transactions, with 57% of take-up coming from sub-10,000 sq ft transactions and only one deal in excess of 50,000 sq ft. This was RPC’s acquisition of Nuveen Real Estate’s 10 Devonshire Square, EC2 (67,023 sq ft).

Overall vacancy across Central London fell 20 bps to 7.2%, with the West End vacancy rate reducing by 20 bps, while the City declined more modestly by 10 bps. While this represents a gradual tightening of market conditions, vacancy remains elevated relative to historical norms. In recent years, this has been driven largely by an oversupply of secondary stock, particularly in fringe locations where demand has been weaker and occupiers have shown a clear preference for prime, well-located, ESG-compliant space.

Central London active demand reached 15.59 million sq ft at the end of April, representing a 9% increase year-on-year and remaining well above the long-term average. This elevated level of demand reflects a continuation of proactive occupier behaviour, with firms engaging in the market earlier in advance of lease events to secure high-quality space in a constrained development pipeline environment. This active demand is being driven by the Insurance & Financial Services sector, which accounts for 27.9% of total requirements in Central London. Demand from this sector continues to be underpinned by steady expansion and consolidation activity, with many firms seeking to upgrade into higher-quality space in core locations, particularly within the City core. The Professional sector follows with 22.6%, while the Tech & Media sector accounts for 20.5%.

City Highlights

West End Highlights

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