West End

Following a slow Q2, Q3 saw a continuation of below average levels of take-up reaching 361,000 sq ft, the lowest quarterly volume this year. Typically, the summer months experience a slowdown in demand levels. In addition to this there is also mounting uncertainty over further tax increases for businesses in the November Budget, causing some occupiers to delay investment and growth plans. Indeed, just 21 new deals were recorded in Q3, down on 39 seen on average per quarter.

The largest deal of the quarter was at the General Atlantic’s 50,000 sq ft pre-let at Publica’s Elephant development, the former House of Fraser department store. General Atlantic will relocate from their current offices in Savile Row and London Bridge. As a result of this deal, the Financial services sector dominated demand accounting for 33% of take-up. The TMT sector follows, accounting for a 25% share.

Availability saw a 10% increase in Q3, largely due to a rise in second hand space entering the supply figures. Vacancy now stands at 4.6%, up on 3.1% 12 months ago. Despite this rise, Grade A space remains constrained with vacancy at just 1.4% for the best quality offices.

West End prime rents stand at £182.50 per sq ft, this reflects annual growth of 14.1%. With new deliveries averaging 856,000 sq ft per annum over the next three years (2026-28), down on the long term average of 1.6m sq ft seen annually, West End prime rents will continue to experience upward pressure going forward.