UK London Office Marketbeat Reports

KEY TAKEAWAYS FOR Q3 2024

• Investment Volumes: Annual investment volumes for Central London offices reached £5.89 billion by the end of Q3 2024, marking a 6% decline from Q2 and the lowest annualised figure on record.
• Leasing Market Growth: In Q3 2024, Central London saw 2.56 million sq ft of take-up, a 21% increase quarter-on-quarter and 1% above the ten-year quarterly average.
• Grade A Leasing Dominance: Grade A leasing accounted for 70% of Q3 take-up, significantly above the ten-year average of 59%, and 4% ahead of the pre-Covid five-year quarterly average.
• Strong Demand for Grade A Stock: By the end of Q3 2024, 2.42 million sq ft of Grade A space was under offer, up 1% from the previous quarter and 24% above the ten-year average.
• Positive Rental Growth Outlook: High demand and a tight development pipeline are expected to drive rental growth, with forecasted annual growth rates of 4.4% for prime assets and 7.6% for super-prime assets in the City, and 4.0% and 7.3% respectively in the West End.