City Core

The City continues to see strong levels of letting activity with 1.3m sq ft of take-up recorded in the first quarter of 2025. This is 45% ahead of the 10-year quarterly average. Furthermore, the number of tenants acquiring space has also increased, Q1 2025 saw 61 deals recorded, up on the 10-year quarterly average of 43.

Boosted by the 181,000 sq ft Simmons & Simmons pre-let at 25 Finsbury Circus, EC2, the City Core was the most active market in the first quarter accounting for a 56% share of City take-up, up on the 51% quarterly share taken on average.

Robust levels of demand continue to place downward pressure on the vacancy rate which fell for the sixth consecutive quarter to 6.5%, down from 6.8% the previous quarter. The development pipeline offers no immediate reprieve to tight supply, indeed, 84% of space due for delivery this year is already pre-let.

Occupier preference continues to be focused on fitted space with good wellness and sustainability credentials together with excellent connectivity. As a result, upward pressure on prime rents remain, with City Core rents standing at £87.50 per sq ft representing annual growth of 9.4%. Rent frees remain at 24 months on a 10 year lease.