2025年第一季度东南部和大伦敦办事处

South East andGreater London Offices Key takeaways Executive Summary STRONG START TO THE YEAR FORSOUTH EAST OFFICE LEASING strategically located buildings,reflecting ongoing shifts in workplaceexpectations and ESG priorities. InQ1 2025, 86% of total take-up wassecured in New and Grade A space,reaffirming the dominance of top-tier buildings and highlighting thebifurcation between premium andsecondary assets. transactions exceeded £20 million,led by the £27 million acquisitionof the Brinel building, indicatingcontinued investor appetite for primeassets where pricing aligns withquality and location fundamentals. The South East office market began2025 with notable momentum.Leasing activity increased in Q1, withtotal take-up reaching 1.2 millionsq ft – a 39% increase compared toQ4 2024 and the strongest openingquarter to a year since 2008. Thescale and breadth of activity wasunderscored by the completion of107 leasing transactions, significantlyabove the five-year quarterly averageof 70 and highlighting a broad-baseduplift in occupier engagement acrossthe region. PIPELINE SIGNALSPENT-UP DEMAND While completed investmentvolumes softened in Q1, the pipelineof potential transactions pointsto sustained investor interest. Atquarter end, approximately £230million of office stock was underoffer, suggesting a potential reboundin activity in the coming months. Inaddition, £456 million of assets werebeing marketed, reflecting renewedconfidence among vendors in thedepth of buyer demand. SUPPLY CONTINUES TO POLARISE While take-up surged, overallmarket vacancy rose marginally to9.7%, with one-third of availablespace considered lower quality andincreasingly ill-suited to modernoccupier needs. The developmentpipeline remains limited, with justover 1.8 million sq ft of speculativeoffice space under construction with adelivery date before 2028, albeit closeto two-thirds of this total is locatedin West London and Cambridge.This subdued pipeline reflects boththe elevated cost environment andselective appetite for speculativedevelopment – but also amplifiesthe ongoing pressure on the supplyof best-in-class product andopportunities ahead. 3 2 1 LARGER FOOTPRINTS UNDERPINTAKE-UP A key feature of Q1 2025 was themarked increase in larger leasingtransactions. Fourteen dealsexceeded 20,000 sq ft, the highestnumber recorded since 2023. BAESystems' acquisition of 155,250 sq ftacross two buildings at South OakWay, Green Park, headed examples oflarger occupational footprints duringthe quarter. This deal representsthe largest transaction of its kindin over a year. The average deal sizerose to 11,650 sq ft, marginally aheadof 2024's average, reflecting thecomposition of letting activity duringthe quarter. Market vacancy rose to 9.7%,albeit one-third of availablespace is Grade B. Total take-up reached1.2million sq ft, the strongestopening quarter of a yearsince 2008. Fourteen deals exceeded20,000 sq ft, the highestnumber recorded since 2023. PRIME YIELDS HOLD STEADY AMIDSELECTIVE SENTIMENT Despite reduced volume, primepricing remained firm, with yieldsholding at 7.00%. This resiliencesuggests that well-let, high-qualityassets remain in demand, particularlyamong investors focused on long-term fundamentals. By contrast,sentiment toward secondary stockremains cautious, as concerns aroundcapital expenditure, obsolescence,and evolving occupier needs weighheavily on investor appetite. Manyinvestors are adopting a moreselective and risk-averse approach,prioritising quality over quantity in apolarised market landscape. INVESTMENT ACTIVITY EASES, BUTUNDERLYING INTEREST PERSISTSFollowing a particularly active Q4 2024, investment volumes moderatedduring the first quarter. Totalinvestment reached £259 million, 53%below the five-year quarterly average.Nonetheless, market engagementcontinues to show improvement,with 25 deals transacted, abovethe quarterly norm of 20. Four 'BEST IN CLASS' SPACE CONTINUESTO DOMINATE Prime Yields hold at 7.00%. Investment volumes reached£259 million in Q1, with£230 million of officestock under offer. Tenant preferences remain resolutelyaligned with the flight-to-qualitytrend. Demand is concentratedin modern, energy-efficient, Occupier market Occupier activity began the new year with momentum, with deal numberswell ahead of the long term trend. The development pipeline remainsconstrained and concentrated, with speculative activity limited. RODDY ABRAM Occupier appetite to upgrade theirheadquarters ahead of lease eventsremains robust. Landlords bringingnew or refurbished offices intoundersupplied markets are able tocommand higher rents compared tohistoric levels, with certain marketswitnessing double-digit growth yearon year. JACK RILEY The development pipeline beyond2027 looks thin, meaning thatoccupiers are engaging withcommitted schemes ahead ofcommencement or during the earlystages of the construction period. Prime Rents £ per sq ft A C T I V ED E M A N D :5 . 1 7 MS QF T D E V E L O P M E