伦敦写字楼市场报告2025年第三季度

Q3 2025 Latest insights on the state of the London office market Executive Summary Key Themes 3. 2. 4. 1. Constrained developmentpipeline continues to impact Investment volumes fallbut deals under offer rise Softer leasing activity in Q3but space under offer rises to Sentiment is improving butuncertainty remains until month and was one of only three regionsexpanding; most others fell back. Neworders rose again and were the strongestin the UK, supported by steadier demandat home and firmer export conditions – a15-month joint-high. Pricing pressures economic pressures that are reshapingstrategy for occupiers, investors and MARKET IS RESILIENT DESPITEECONOMIC UNCERTAINTY The London office market is operatingagainst a backdrop of persistentinflationary pressure and policyuncertainty. UK CPI inflation remainselevated at around 3.8%, well abovethe Bank of England’s 2% target,with forecasters expecting inflationto average above 3% through 2025before gradually easing. The Bankof England has held interest rates at4.0%, pausing its rate-cutting cycle inresponse to sticky services inflation For occupiers, the primary challengeis balancing cost control with theneed to secure space that supportstalent retention, sustainabilityobjectives and evolving workplacestrategies. Persistent inflation andelevated interest rates are placingupward pressure on operational costs, In terms of jobs and sentiment, thesignals are constructive. London firmsare still trimming headcount, but thedecline – now ten months long – was lesssevere than the UK trend, and reflectsefficiency drives amid spare capacity Investors are navigating a capitalmarkets environment characterisedby low liquidity. Interest rates are on adownward path but beset by episodesof volatility which as affected investor London is expanding while manyregions are not, with order books,external demand and sentiment pointing Attention is now turning to theAutumn Budget, which is expectedto set out the fiscal priorities of thegovernment. Speculation over potentialchanges to property taxation, business However, business activity in Londoncontinue to contrast with other parts of For developers, viability is thecentral concern. Construction costsremain elevated, financing terms arerestrictive, and planning timelinescontinue to lengthen. ESG regulationsand the transition to net zero are “Take-up in Q3 reached2.7m sq ft, down 23.3%from the previous quarter,10.0% below of the long- MARKET PLAYERS FACE CHALLENGES The London office market continues TAKE-UP FALLS BUT OUTLOOKLOOKS STRONG Take-up in Q3 reached 2.7m sq ft,down 23.3% from the previous quarter,2.8% below of the long-term quarterlyaverage. Despite this, take-up year todate is 19.8% ahead of the same periodlast year. The lower volumes in Q3 aredue to a lack of larger pre-lets withonly two transactions above 70,000sq ft. Interestingly, there was a higher The proportion of new andrefurbished take-up fell on the quarterto 58.4%, marking a significant shiftfrom the previous quarter wherenearly three-quarters of leasingactivity targeted such space. Therewas also a lack of transactions signed London – Take-upm sq ft (LHS), % (RHS) Once again, the financial sectorwas the most active across London,accounting for 32.0% of take-upduring Q3, although the volume oftake-up from financial firms was down Bristow’s pre-let at Bow Bells House,Bread Street, EC4 (68,447 sq ft), whowill relocate from their existing HQ at100 Victoria Embankment, EC4 afterBow Bells House reaches practical The combination of a marginalincrease in active demand and the22.2% increase in the volume of spaceunder offer suggests that leasing Of the ten largest transactionssigned in Q3, nine were expansionary, MARGINAL INCREASE IN AVAILABILITYBUT IMBALANCE REMAINS The volume of active demandincreased by 2.4% during Q3 to 10.2msq ft, which is 9.1% above the long-term average. Whilst the overallvolume of demand is healthy, and aperiod of three consecutive quarters The largest transaction signed in Q3was HSBC’s 170,894 sq ft acquisitionat 40 Bank Street, E14, which was asignificant driver behind the financialsector’s dominance this quarter. Thenext largest deal signed in Q3 wasInfinitSpace who have committed tothe entirety of Fox Court, 14 Grays Availability increased by 2.9% to 23.9msq ft over the quarter, which is 28.4%above the long-term average. This means As a result, the vacancy rateincreased from 8.8% to 9.0%, setagainst a long-term average forLondon as a whole of 7.5%. Themarginal increase in availability wasdriven by refurbished and second-hand space. The vacancy rate for newspace remained stable at 1.9%, whilst The volume of space under offerincreased from 2.7m sq ft to 3.3msq ft during Q3. Given the relative lackof large transactions signed in Q3, the13 units under offer exceeding 40,000sq ft provides a positive outlook forthe short to medium-term, with five of “Of the ten largesttransactions signed in Q3,nine were expansion