Central London Office Market Watch Q4 2025

Central London office take-up totalled 2.63 million sq ft in Q4 2025 with 188 transactions completed, down 19% year-on-year and 13% below the ten-year average, though the year saw 10 transactions over 100,000 sq ft—the highest in three years—driven by strong demand from Insurance & Financial Services (31% of space), Tech & Media resurgence, and preference for high-quality space with 77% of 2025 lettings in recently developed or refurbished buildings. Central London investment turnover reached £9.88 billion across 220 transactions in 2025, up 48% on 2024, with vacancy rates at 7.4% (down 40bps quarterly and 10bps year-on-year), City Prime rents reaching a record £105.26 per sq ft (up 6.8%), West End Prime rents at £166.61 per sq ft (up 6