Volume of space up 51% quarter-on-quarter
Central London’s residential market may be facing its own challenges, but in the office market the volume of space under offer is now at its highest level since 2007, up 51% quarter-on-quarter to 4.44 million sq ft.
The increase was driven primarily by large occupiers targeting the Wider City and Canary Wharf markets, with several major requirements progressing through lease negotiations.
Office take-up reached 2.46 million sq ft in the second quarter of 2026, up 28% quarter-on-quarter and in line with the five-year average, according to the latest Central London office data from Cushman & Wakefield.
Its Marketbeat Central London Offices report showed that more than three-quarters (77%) of leasing activity was concentrated in grade A space. The West End was the most popular, with 1.11 million sq ft of office space transacted, followed by 989,000 sq ft in the City and 324,000 sq ft in East London.
‘A sign of occupier confidence’
James Campbell, international partner and head of London offices leasing at Cushman & Wakefield, said: “The record volume of space under offer is a clear sign of occupier confidence. Businesses may be taking longer to make decisions, but they are still committing to London and increasingly beginning their searches earlier to secure the best grade A space before supply tightens further.”
Technology occupiers accounted for a quarter (25%) of take-up in the first half, with AI businesses responsible for nearly 60% of that space – a 15% share of total take-up across Central London.
Investment activity improved in the second quarter, with £2.06 billion of office assets traded, up from £1.94 billion in Q1 and bringing H1 volumes to £4.02 billion. This is 15% below both the H1 2025 and five-year H1 averages, but Cushman & Wakefield says that momentum is building.
Prime office yields held steady across Central London in the second quarter, with City yields at 5.5% and West End yields at 3.75%. Cushman & Wakefield continues to forecast yield compression over the medium term.
