The Occupier & Q4 2024 Snapshot

2024 was a year of contrasts for the Central London office market— highs and lows of leasing activity, a rise in the supply of office space but upward pressure on rents maintained, and a growing influence of serviced office solutions on occupier choice. Our latest edition of The Occupier reflects on the emerging office market trends and how they will play out over the year ahead, which looks set to be one of recalibration for workplaces and workforces alike.

2024 Key Takeaways:

Leasing Boost – Post-pandemic leasing high in Q4 2024 sustains leasing volumes.

Space Crunch – More availability, but Grade A offices in prime spots are scarce. Competition is heating up.

Rents Rising – 15% growth in 5 years, and landlords are tightening rent-free incentives. Time to negotiate hard.

Spotlight on serviced – the flexible office landscape is entering a new phase of transformation.

Mega & mid-sized – transactions over 50,000 sq ft returned in greater volume in the second half of 2024 including 8 mega deals.

Outlook 2025:

RTO Reset More firms will mandate in-office attendance, driving demand for collaborative spaces and upgraded amenities.

Offices as Cultural Hubs – Workspaces will be key to DEI, wellbeing, and engagement, shaping company identity.

AI Integration – Rise in AI investment and implementation is set to reshape office requirements and workforce dynamics.

Rents Keep Climbing – Prime space demand will push rents higher, with landlords scaling back incentives.

Flex Goes Long-Term – Serviced and managed offices will become a more go-to strategy, not just a short-term fix.

If you would like any further information on this report and its insights, please do get in touch or alternatively you can find more on our website at www.devono.com

 

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The Occupier & Q4 2024 Snapshot

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