City Core

Office take-up in the City reached 886,000 sq ft in Q3 2025, representing a slight fall compared to Q2 but remaining in line with the 10-year average to continue a positive period for demand. Following a trend seen across London, the deal count in the City remained below average. However, the number of deals for mid-sized floorplates increased to within the 10-year average in a positive sign for smaller occupiers.

Take-up was boosted by one of London’s largest deals of the year, as legal firm Herbert Smith Freehills Kramer let 238,000 sq ft at 1 Appold Street to relocate and downsize slightly from nearby Exchange House. Planning permission for a redevelopment of the 404,000 sq ft office building was granted in 2025, though construction has yet to commence. The scheme is anticipated for delivery in 2028.

Vacancy decreased for the ninth consecutive quarter, falling 7 basis points to 5.4%. This was driven by take-up outweighing the release of secondary space, with supply tightened further as 30 Finsbury Square went under refurbishment. One completion was recorded over the quarter at 1-2 Broadgate, where the 500,000 sq ft development was delivered fully occupied by JLL and Allen & Overy.

Prime rents across the City Core remain at £87.50 per sq ft. A record rent of £147.00 per sq ft was achieved at 8 Bishopsgate in Q3, reflecting persistent rental pressure at recently completed developments, especially at those offering best-in-class amenities and optimal connectivity. Rent free periods remained at 24 months for a 10-year period.