Central London office deals up by over 25% on last quarter

Central London leasing deals rose by 28% in the second quarter, dominated by financial services deals of over 100,000 sq ft, according to CBRE, with take-up in key markets reaching 2.9m sq ft.

Pre-lets accounted for 35% of total take-up, equating to 1m sq ft, 50% higher than the long-term average. Availability remained stable at 23.2m sq ft, above the 10-year average of 18.6m sq ft.

Investment volumes totalled £1.6bn in Q2, making it the strongest first half of the year for investments since 2022 and up 70% on H1 2024, driven by  overseas investment, which accounted for 71% of H1 total investment.

The largest deal of the quarter was State Street’s purchase of 100 New Bridge Street, EC4 for £333m.

James Nicholson, head of London & Metropolitan Occupier Transactions at CBRE, said: “The central London office market has had a busy Q2, driven by a number of key growth-driven large deals. Our new figures highlight the sustained confidence among businesses in the physical value of office space, accessibility to talent as well as the necessity for global companies to have a dedicated office in the UK’s capital.”

Ed Bradley, head of Central London Investment at CBRE, added: “The central London office investment market is regaining its footing after a lengthy recovery period following the pandemic. This year we’ve already seen investor momentum building from overseas investors, particularly institutions and sovereign capital.”