Central London Offices Review and Outlook – September 2017

The strong performance in the first half of the year highlights the central London office market's resilience and its continued attraction to occupiers and investors across the globe

■ Demand in both the West End and City has defied expectations so far in 2017, with take-up in excess of average in both markets at the half way mark. In contrast, take-up has been subdued in the Docklands.

■ Availability has remained constant in the City and Docklands, while we have witnessed only a slight increase in the West End.

■ Headline rents have held in the West End while we have seen only a slight decline in the City. Both markets have witnessed an increase in the level of incentives being granted to tenants.

■ Boosted by an influx of foreign capital, investment volumes in both the City and West End are significantly above the long term average with high levels of demand, particularly for large 'trophy' assets.

■ Looking ahead, the fundamentals of the central London office market remain strong. In both the City and West End the amount of supply under offer and active market requirements are above average which suggests a strong H2 can be expected. Similarly, recent high levels of pre-letting in both markets have resulted in speculative development completions being kept to a moderate level, resulting in only a gentle increase of vacancy rates being expected over the short-medium term.

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Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573


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