City Core

Following a strong start to the year, demand in the City remained positive in Q2 2025 to stand at 978,000 sq ft. While this represents a slight reduction compared to Q1, office take-up sat 8% higher than the 10-year average following a handful of notable deals with 2025 representing the strongest start to a year for City take-up since 2018. However, as was seen across London, the Q2 deal count fell 37% compared to the 10 year average.

Take-up was boosted by the largest deal of the quarter in London, as investment firm Squarepoint let the entirety of the 406,000 sq ft 65 Gresham Street to relocate and expand from Moorgate. 65 Gresham is due to begin a comprehensive refurbishment later this year with completion anticipated for 2028.

Vacancy continued to decrease over the quarter, falling from 6.5% to 6.1%. As a result, City vacancy rates sit at their lowest level since the pre-pandemic period, compounded by a recent period of healthy demand. Little reprieve is expected in the short-term as 100% of all space currently under construction and due to complete this year is occupied prior to completion.

City prime rents remained unchanged over the quarter, standing at £87.50 psf in the City Core to represent annual rental growth of 6.4%. Rental premiums were consistently achieved on recently completed or under construction space, developed with a focus on best-in-class environmental credentials. Rent frees remain at 24 months on a 10 year lease.