Across the Central London market

Take-up across Central London reached 600,830 sq ft in May across 56 transactions, and was up 7% on May 2025. Leasing activity remained broadly stable, with the number of transactions completing during the month sitting slightly above the five-year average. This brought year-to-date take-up to 3.4 million sq ft, down 4% on the long-term average, with Grade A space continuing to account for the majority of space acquired at 92%.

Only three transactions over 25,000 sq ft completed in May, the largest of which was Sierra AI’s acquisition of the 3rd floor (41,787 sq ft) on confidential terms. This transaction continued the trend of growing demand from the AI sub-sector, which accounted for 85,000 sq ft of space acquired during the month, with OLIX AI acquiring the 5th floor (30,647 sq ft) at 1 Angel Square, EC1, and Microsoft AI acquiring the 2nd floor at 15 Fitzroy Square, W1 (13,376 sq ft).

Overall, the Technology sub-sector has accounted for 25% of space acquired across Central London so far this year, while the wider Tech & Media sector accounts for 3.2 million sq ft, or 20%, of current active demand. Demand from the sector therefore remains at a record level, despite the rise in take-up from AI firms so far.

Space under offer at the end of May stood at 2.4 million sq ft, which is down 15% on the 10-year average and has been broadly stable at this level since the start of the year.

However, a further 820,000 sq ft of occupiers are known to be under offer to regear at their existing premises, highlighting the continued role of renewals and regears in supporting leasing activity. With the Insurance & Financial sector accounting for 42% of space under offer, we anticipate leasing activity from the sector will pick up over the next quarter.

Active demand remained at a record level at the end of May, increasing by 2% over the month to 15.9 million sq ft, with 375,000 sq ft being added to demand since the end of Q1. At 11.1 million sq ft, requirements sized over 50,000 sq ft have doubled over the past decade from 4.6 million sq ft in Q4 2016, underlining the depth of large requirements.

While the top 10 occupiers have typically accounted for around 20–30% of total active demand, their share peaked at 34% in Q4 2016 and 33% in Q4 2020 but has since eased to 23–25% this year, suggesting the record level of demand is not being driven solely by a handful of very large searches, but demand is broadly distributed, albeit with a concentration in the 10,000–15,000 sq ft band, which account for 22% of active demand by size band.

Central London supply continued to tighten, with a further 0.5% fall in May, following a 2.1% fall in April to 18.6 million sq ft, though the vacancy rate remains at 7.2%. There are currently 19 Grade A options available now or in the next six months for occupiers seeking to acquire 100,000 sq ft or more, and there are 28 active occupiers (excluding under offers) with requirements over 100,000 sq ft, reflecting the limited options, particularly for those seeking to be located more centrally, with only two of these options being in the Core.

The average achieved City prime rent for the year to date stands at £135 per sq ft, up 35% on the same period in 2025. The average achieved West End prime rent reached £183.38 per sq ft, up 5% year-on-year. Average City Grade A rent stood at £79.65 per sq ft at the end of May, up 13% on the same period in 2025, while the average West End Grade A rent reached £103.91 per sq ft, up 3% year-on-year.

City Highlights

West End Highlights

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