West End Leasing
2026 has started in a promising fashion in the West End office leasing market. Despite well documented global uncertainties, occupiers are continuing to secure high-quality offices across many submarkets, demonstrating robust levels of demand moving forward.
A total of 930,000 sq ft was let across the West End in Q1 2026, an increase of 10% from last quarter and up 3% from the same point last year. Notably the amount of space currently ‘Under Offer’ sits at just under 1.3M sq ft which is over double that noted at the end of Q1 2025 and is a good indicator of likely strong performance as we move further into the year.
In terms of supply the overall vacancy rate has increased slightly to 8.5%. This is a result of some development completions coming online, in addition to a slightly increased amount of secondary/tenant-controlled space coming to the market. There remains a paucity of supply in particular submarkets with Mayfair/St. James’s & Soho exhibiting vacancy rates of just 3.4% and 2.5% respectively for new or refurbished space.
The speculative development pipeline will see a high point this year with 3.8M sq ft due to be delivered to the market in 2026. That said 1.5M sq ft of this pipeline has been pre-let and a substantial portion of the remaining space is in negotiation/under offer.
Headline Market Deals
Several landmark deals reached completion in Q1 2026. The largest of which was in Fitzrovia where analytics & AI company Databricks secured the entire 137,000 sq ft at Network, 10 Howland Street, W1 from Derwent London at an overall rent understood to equate to £103.50 per sq ft. This was joined by a high profile letting in Victoria/Westminster where Formula One took a lease over the entirety of 40 Broadway, SW1 comprising 102,000 sq ft from Tellon Capital.
In the core there were two notable transactions at top rents - Verition Advisors taking just under 50,000 sq ft at Lucent, 1 Sherwood Street, W1 from Land Securities and the first pre-let at The Pegasus, Sackville Street, W1 has completed with Sona Asset Management securing 31,500 sq ft on the 1st - 3rd floors of this soon to be completed development by Aviva Investors with a rent understood to be blended at c £180.00 per sq ft.
Lucent, 1 Sherwood Street, W1
Network, 10 Howland Street, W1
The Pegasus, Sackville Street, W1
What is the Direction of Travel?
It remains to be seen how recent macro-economic events truly affect the West End office leasing market, although the current indications remain positive with a large amount of space ‘Under Offer’ and rents remaining robust in most sub-markets for either new or refurbished spaces. The drive for occupiers continues to show a clear preference for top quality accommodation and amenity for their workforce in well connected to transport hub locations continues unabated.
