Analysis from global commercial real estate advisor Avison Young reports that office vacancy in the City of London has decreased for the ninth consecutive quarter, falling 7 basis points to 5.4%, with take-up outweighing the release of secondary space and prime rents remaining at £87.50 per sq ft.

Office take-up in the Square Mile reached 886,000 sq ft in Q3 2025, remaining in line with the 10-year average and boosted by significant deals, including one of London’s largest of the year, with legal firm Herbert Smith Freehills Kramer taking 238,000 sq ft at 1 Appold Street to relocate and downsize from nearby Exchange House.

Other significant deals across London include HBSC’s 210,000 sq ft letting at 40 Bank Street and Bristows’ 70,000 sq ft letting at Bow Bells, 1-11 Bread Street, signifying strong demand from the professional services sector, which accounted for the largest proportion of deals, equating to 30% of overall take-up.

Across Central London, overall vacancy rates have fallen from the highs of 2023 and are inching downwards, standing at 6.8% in Q3, down from 6.9% 12 months ago. The City and West End are the most supply constrained markets with vacancy levels of 5.4% and 4.6%, respectively, presenting a challenge to occupiers seeking high-quality, well-located space.

Total Central London office take-up for Q3 2025 reached 2m sq ft, sitting 21% below the 10-year quarterly average, due to many occupiers choosing to renew leases rather than acquire new space. However, looking at the broader picture, take-up year-to-date has reached 8.1m sq ft, ahead of 2024 levels and the 10-year average, with demand remaining focused in core locations.

Currently, a third of all space under construction across Central London is pre-let and 50% of space delivered in 2025 is now let, highlighting occupiers’ preference for best-in-class spaces.

James Walker, Principal and Head of London Office Leasing at Avison Young, said:
“The Central London office market is showing clear signs of continued strength and as we look to 2026, we see strong indications this will continue.

When we compare vacancy rates to other comparable international cities, we see the sustained buoyancy of the Central London market. The focus now needs to be on unlocking stalled development to ease supply constraints and meet the demands of occupiers. As competition for top-tier space intensifies, accelerating the delivery of new Grade A space will be crucial.”

Read Avison Young’s Central London Office Analysis for Q3 2025 in full.