Key insights include:
Leasing Trends:
- Leasing activity hit a post-pandemic low, with annual level of transactions significantly down.
- The number of larger deals declined in 2024, with the average deal size dropping to just 3,464 sq ft—the lowest in two decades.
Sector Highlights:
- The Financial sector remained the most active, accounting for 56% of leased space, though demand has softened.
- Media companies made a comeback, with leased space more than doubling year-over-year.
Office Availability:
- Availability has steadily declined since 2021, with just 767,000 sq ft on the market at the end of 2024.
- While secondhand space is becoming scarcer, new developments are increasing Grade A options for businesses.
Rental Market:
- Prime Grade A rents surged by 9% in Q4 2024, reaching £175.00 per sq ft, with ‘super prime’ rents climbing even higher.
- Grade B rents remained stable at £95.00 per sq ft, but potential increases loom in 2025.
With workplace strategies evolving and economic uncertainties ahead, this report highlights key trends and opportunities shaping the market.
Looking beyond Mayfair & St James’s?
Explore our Insight reports covering office markets across London and key business sectors.
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