West End Office Leasing Market
Overview
Despite continued market uncertainty, the outlook for occupational demand remains robust in the West End office leasing market. Q2 2025 take up was 985,000 sq ft which is a 15% increase from Q1 although still below the 10 year long term average. Year to date take up sits at 30% increase on the same point last year and the number of large transactions of over 50,000 sq ft that have completed has reached its highest level since 2019.
Headline Allsop Deals
Whilst we continue to see many office occupiers wanting to be located on as few floors as possible, we were delighted to conclude 2 lettings in Q2 of outstanding self-contained buildings. These two deals demonstrate that having ultimate control of a building and the experience provided can still be desirable to certain businesses.
29 Queen Anne Street, London, W1
Disposal of 6,191 sq ft newly refurbished self-contained period building on behalf of the Howard de Walden Estate. Successfully let to J&A Beare Ltd on a 15 year term.
13 Berkeley Street, London, W1
Disposal of 8,655 sq ft self contained building in prime Mayfair location on behalf of Viridis Real Estate. Successfully let to market leading fashion brand Hermes.
Headline Market Deals
The return of large headline deals to the West End has been the most notable aspect of the improved performance in Q2 2025. The largest recent deals include Life Arc taking 70,000 sqft at Kova KX, 105 Judd Street, WC1, CDR taking 62,500 sq ft at GPE's 30 Duke Street, SW1 and most notably McDermott Will & Emery taking a market leading pre-let of 115,000 sq ft at The Lazari Building, 7 Brook Street, W1.
What is the Direction of Travel?
At the top end of the market, Mayfair prime rents continue to edge higher, rising to a new prime level of £170 per sq ft in Q2 2025, driven by the severe stock shortages that have developed in the sub-market with new Grade A vacancy sitting at just 0.6% of total stock. Prime Mayfair rents have grown by 21.4% over the past 12 months, the strongest growth of any submarket across the West End. It appears that rents on Grade B space are now also increaswing, rising to £95.00 per sq ft, following an extended period of disconnect between the very best space and everything else.
Furthermore, outside of Mayfair and across the West End we are increasingly seeing improved demand from increasing numbers of occupiers seeking value opportunities whether that be good quality space in fringe locations or more secondary spaces in the West End core.
