Contents

• Across the City market

• Across the West End market

Across the City market

Despite the holiday break, August saw a greater level of space acquired, 33% higher than the previous month, with 427,593 sq ft completing across 24 transactions. Year-to-date leasing activity is up 9% on the same period last year although is down 4% on the long-term average for this period. Take-up this month was driven by Legal & General’s pre-let of the part ground, floors 4–8 of Woolgate Exchange, EC2 a development set to complete early next year. This pre-let demonstrates the competitive nature of the market to secure best-in-class office space with firms moving to buildings with high sustainability credentials shown by the 76% of take-up this month coming from BREEAM ‘Excellent’ or better-rated buildings.

The vacancy rate continued to slip back a further 10 bps on the previous month to 8.7%, which is down 70 bps on August 2023. This reduction in supply has partly been down to tenant space being withdrawn from the market, with it now making up only 19% of total supply, the lowest level in over four years.

City Highlights

Across the West End market

Following a very active July, leasing activity levels in August reverted back to levels we experienced in the first half of the year, with the total for the month standing at 211,776 sq ft across 21 transactions, 26% below the ten-year average. However, thanks to a very active July, take-up is now just 3% down on the same period during 2023.

There are also signs of improving occupier sentiment during the month, with under-offers at 1m sq ft, their highest level in a year and up 15% on the previous month.

Two of the largest transactions we have seen this year have been to occupiers who are new to the West End market. The larger of these saw the British Standards Institute acquire the top two floors at The Acre, WC2, which recently underwent a comprehensive refurbishment, having previously been based in Chiswick. Similarly, Maidenhead occupier Urenco has taken floor 6 at Paddington Square, W2, reflecting the growing demand we have seen from Greater London occupiers to be more centrally located. 

During the month, a further two transactions completed to Serviced Office Providers, which took take-up for this sector to 140,619 sq ft across six transactions, the highest in three years as the market continues to see sustained robust occupier demand for flexibility.

West End Highlights

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