Central London office demand hits
near 20-year high

Fresh data has revealed a strong second quarter for Central London’s office market, with activity picking up pace and the volume of space under offer reaching its highest level in almost two decades. According to Cushman & Wakefield, some 4.44 million sq ft was under offer during Q2, representing a sizeable 51% increase on the previous quarter and the highest figure recorded since 2007.

The surge was largely driven by major occupiers targeting the wider City and Canary Wharf markets, with several sizeable requirements now progressing through lease negotiations. Meanwhile, take-up also moved upwards, rising 28% quarter-on-quarter to 2.46 million sq ft - broadly in line with the five-year average.

Leading the charge was the West End, where 1.11 million sq ft transacted during the quarter, followed by 989,000 sq ft in the City and 324,000 sq ft across East London. Cushman & Wakefield also noted that businesses are beginning their searches earlier in a bid to secure the best Grade A space, with five off-plan pre-lets either committed to or under offer so far this year.

“The record volume of space under offer is a clear sign of occupier confidence,” said James Campbell, international partner and head of London office leasing at Cushman & Wakefield.

“Businesses may be taking longer to make decisions, but they are still committing to London and increasingly beginning their searches earlier to secure the best grade-A space before supply tightens further. This is further evidenced by five off-plan pre-lets in 2026, either committed to or under offer.”

Investment activity also strengthened, with £2.06 billion of Central London office assets changing hands during Q2, up from £1.94 billion in Q1. This brought the first-half total to £4.02 billion, although volumes remained 15% below both H1 2025 and the five-year H1 average.

Looking ahead, the pipeline suggests there could be plenty more activity to come. A further £3.13 billion of assets are currently under offer - almost £1 billion more than at the end of Q1 - with Cushman & Wakefield expecting deal volumes to continue building throughout the second half of 2026.

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