The Mayfair Q2 2024 London Office Market Guide

We are pleased to share with you our latest insights report with the focus on the Mayfair and St James’s office markets, covering the first half of 2024. This report provides a comprehensive overview of the current market dynamics, including leasing activity, rental trends, and the availability of office space.

Key Highlights from the Report:

Leasing Activity:

• The total leasing activity in the Mayfair and St James’s markets has decreased significantly—a 57% drop in H1 2024 from the previous six months.
• A notable decline is leasing of larger spaces, while demand for smaller spaces below 5,000 sq ft remained steady.

Sector Trends:

• The Financial sector continues to dominate leasing activity, accounting for 60% of the total space leased in H1 2024.
• The Legal and Technology sectors have seen reduced activity compared to recent years.

Office Availability:

• Availability of office space in Mayfair and St James’s has increased by 19% since the end of 2023.
• Despite this rise, the availability of Grade A space remains relatively low, making it a competitive market for high-quality office spaces.

Rental Trends:

• Prime Grade A rents have stabilised at £160.00 per sq ft, and super prime rents remain high at £200.00 per sq ft at the end of Q2 2024.
• With limited Grade A availability, we anticipate further upward pressure on rents over the next 18 months.

As the market evolves, we expect to see more businesses seeking top-quality, sustainable office spaces. The report also highlights emerging opportunities for tenants, including pre-leasing and negotiating favourable terms for refurbishments and fit-outs.

If you have any questions or would like to discuss the report in more detail, please feel free to contact us directly.