A notable trend in the West End office market is the concentration of deals in larger spaces, with 1.12 million sq ft of take-up attributed to transactions exceeding 20,000 sq ft. This comes alongside an easing in demand for smaller spaces, specifically those under 10,000 sq ft. The Business and Professional Services sector has shown strong growth, with a 30% increase in demand. This sustained activity has contributed to the continued growth of prime rents across the submarkets.
Submarket performance, however, is varied. St. James’s faces a very tight supply, while Marylebone saw a drop in availability following significant take-up during the quarter. In contrast, Covent Garden has the highest availability among the submarkets at 12.1%. Soho’s market was marked by a lack of large transactions, with only three deals recorded above 10,000 sq ft.