Across the Central London market

As is often the case during the summer months, leasing activity was quiet in August following a stronger July, although volumes remained ahead of the same month last year. A total of 557,416 sq ft was acquired across Central London, down 35% month on month (MoM) but 10% above August 2025, with the City accounting for 67% of space acquired. This takes year-to-date (YTD) take-up to 6.13 million sq ft, 2% ahead of the corresponding period last year, 8% above the five-year average, and broadly in line with the ten-year average. Grade A space accounted for 93% of activity during the month, underlining the continued occupier preference for best-in-class accommodation.

Activity was weighted towards the City, where 21 transactions totalling 373,298 sq ft completed, compared with 184,118 sq ft in the West End. City take-up was broadly unchanged from July and 11% ahead year on year (YoY), with the largest reported transaction being law firm Mishcon de Reya pre-letting four floors (161,000 sq ft) at MidCity Place, 71 High Holborn, WC1. That one deal made up 43% of City take-up and almost 30% of the Central London total. The other 20 City transactions had an average size of just over 10,600 sq ft. Grade A space accounted for 95% of City take-up during the month. Rents continued to rise. Average City Grade A rents reached £86.26 per sq ft in August, up around 20% YoY.

West End activity was more subdued following a particularly strong July, falling 61% MoM, although its YTD total reached 2.79 million sq ft, 27% above the same point last year. Rental evidence remained firm across both markets, with average Grade A rents for August rising to £134.17 per sq ft in the West End, around 42% higher than a year ago.

In terms of business sectors, the Professional services sector was the most active in August, acquiring 172,762 sq ft, or 31% of Central London take-up. Almost all of this came from Mishcon De Reya's pre-let, with Doughty Street Chambers' 11,762 sq ft letting at Cobham House, EC4 accounting for the rest. Insurance & Financial Services was next with 68,212 sq ft (12%) across seven transactions and was concentrated in the West End. It made up a third of West End take-up, led by two pre-lets at The Elephant, 318 Oxford Street, W1, Park Square Capital (28,105 sq ft) and General Atlantic (18,428 sq ft). Serviced Office Providers were the third-largest sector, accounting for 61,773 sq ft (11%), all of it in the City, where Sandbox Workspace took 36,048 sq ft at 1 Whittington Avenue, EC3, and Worklife took 25,725 sq ft at Finsbury Dials, EC2.

However, when looking at the YTD, Tech & Media sector has been the most active, acquiring 1.65 million sq ft (27% of Central London take-up), ahead of Banking, Insurance & Financial Services with 1.35 million sq ft (22%), while Professional services accounts for 12% (749,343 sq ft).

Occupier demand softened during August, with active requirements across Central London falling 5% to 14.46 million sq ft, although this remained 10% above August 2025. However, space under offer fell 18% to 2.51 million sq ft and was 26% below last year.

Furthermore, availability continued to tighten, supply contracted by 1% during the month and 9% YoY to 18.16 million sq ft. This reduced the Central London vacancy rate to 7.0%, around 60 basis points below its level a year ago.

This constrained supply backdrop, particularly for high-quality space, should continue to support prime rental levels. With total demand well above long-term averages and prime availability in core locations shrinking, competition for the best buildings is likely to stay strong into the final four months of the year.

City Highlights

West End Highlights

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