Central London office leasing activity sees 18% spike

According to Savills’ Central London Office Market Watch Q2 2025, leasing also increased 16% on the ten-year long-term average, bringing brought year-to-date take-up to 4.8 million sq ft, up 4% on the long-term average for the same period.

This increase was despite the number of transactions completing being down 9% on the long-term average.

The volume of transactions over 50,000 sq ft was the highest recorded since H1 2019, while the number of transactions over 100,000 sq ft reached its highest level since 2017.

According to Savills, this was driven by a combination of the intensified focus on in-person attendance, a draw to quality, as well most occupiers increasing their office footprints.

In the City, the end of H1 saw leasing reach 3.1 million sq ft, up 12% on the long-term average, with the completion of five transactions over 100,000 sq ft.

Meanwhile, in the West End, leasing take-up reached 1.7 million sq ft, up 14% on the five-year average and down 9% on the long-term average (though Savills said this was in line with its prediction of the medium-term impact of agile working).

The number of deals in the West End over 50,000 sq ft rose to eight, up from just two in H1 2024, marking the highest volume of large lettings since 2019, said Savills.

The report went on to say that with development completions in 2025 set to reach record levels, and Q4 completions added to supply (2.5 million sq ft), the vacancy rate rose sharply during Q2 to 7.8% (20 million sq ft) — this represented a 70 bps increase on the previous quarter the largest quarterly outward movement since Q4 2020, said the report.

However, Savills continued that vacancy rate remained 100 bps below the pandemic rate peak and 180 bps below the previous peak during the GFC.