Q1 2022 Central London office market report

Momentum in the leasing market continued into the first three months of 2022, with 2.4 million sq ft let across Central London. The professional services sector and the banking & finance sector have been key to the buoyant leasing market, accounting for 26% and 25% respectively.

Space under offer rose to 3.2 million sq ft, which was the highest level since the start of the pandemic and more than double the same period in 2021. There was also a marginal increase in supply during the quarter as several speculative developments were completed. The majority of completed schemes this quarter were refurbished space, which contributed to an increase in overall vacancy.

Investment volumes across Central London reached a historic first quarter high of £4.9 billion, with a further £5.1 billion under offer. Office turnover was 69% above the 10-year Q1 average and three times higher than the volumes seen in the first three months of 2021.