Press Release
CBRE Reports Strong Momentum in Central London Office Market, with Take-Up Increasing for Fourth Consecutive Quarter
February 10, 2025
Media Contact
Director, External Communications & PR
The Central London office market saw a strong finish to 2024, according to new research from CBRE. Take-up increased for the fourth consecutive quarter, reaching 3.5 million sq ft, surpassing the long-term Q4 average by 3% and marking a 16% rise quarter-on-quarter.
Investment volumes also saw a positive uptick, totalling £1.6 billion in Q4 – an increase of 22% from the previous quarter and contributing to a full-year total of £4.9 billion. Although this figure is 7% below the previous year’s total, it reflects a stabilising investment climate.
The availability of office space decreased by 7% quarter-on-quarter, marking the third consecutive quarterly decline, driven primarily by a reduction in secondhand availability.
The vacancy rate in Central London decreased to 7.6% at the end of Q4, down from 8.0% in Q3, reflecting the ongoing demand for office space in the capital. Notably, all Central London submarkets experienced a decline in availability, except for the West End, which saw a 6% increase.
The Central London office market continues to demonstrate dynamic resilience with early signs of growth through exceptional rental performance. The increase in leasing take-up and investment volumes signals the confidence among businesses in the physical value of office space which we forecast to grow.
While supply is tightening, it’s crucial to note that 42% of the 14.5 million sq ft currently under construction has already been let or is under offer, indicating a strong appetite for quality space in Central London.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.co.uk.