Southbank
Keys stats this quarter
TAKE-UP FOR Q2 (SQ FT)
75% above the 10-year quarterly average
VACANCY RATE
PRIME RENT (PER SQ FT)
London Bridge
Q2 2025 saw 270,000 sq ft of office take-up in the Southbank. While this represents a 14% decline on Q1, Q2 was still 75% greater than the 10-year average. As a result, 2025 was the strongest start to a year for office demand for over a decade.
Take-up was driven by two major lettings at 76 Southbank: Lego let 194,000 sq ft to relocate and significantly expand from Holborn, while PayPal let 41,000 sq ft to again expand but relocate from the City. A refurbishment of 76 Southbank is due to complete later this year, with the now fully occupied site developed to achieve best-in-class ESG credentials and optimised workspace flexibility.
Office vacancy increased over the quarter, rising from 7.6% to 8.1%. This was partly due to the release of secondary space, alongside the speculative completion of the 61,000 sq ft 30-34 Old Paradise Street. A further increase could be expected as 370,000 sq ft of speculative space is set to be delivered by the end of 2025.
Prime rents remained unchanged at £80.00 psf, with rental premiums achieved in Waterloo and London Bridge. Rent frees largely remain at 24 months for a 10 year lease.
KEY DEALS
Source: Avison Young
TOP TENANT SECTORS Q2
Source: Avison Young
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