City Core

In Q1 2024, City take-up totalled 983,000 sq ft, which was up on the 608,000 sq ft recorded in Q1 2023 and ahead of the ten-year average of 908,000 sq ft. Q1 take-up was down markedly on Q4 2023, when 1.8 million sq ft was acquired, although this reflects a common seasonal trend – in seven out of the last ten years, Q1 take-up has been lower than the preceding Q4.

The Financial Services sector was particularly active accounting for 34% of all take-up for the quarter, while Professional Services claimed a market share of 20%, making it the second largest sector.

The largest deal of the quarter was UK law firm, Fieldfisher, acquiring 83,000 sq ft at Riverbank House, Swan Lane, EC4. Also, a deal was signed by Grant Thornton at 8 Finsbury Circus, EC2, for 75,000 sq ft. The locations of the larger deals show ongoing interest in quality buildings in close proximity to major rail and tube hubs.

The City vacancy rate fell for a second consecutive quarter to 8.5% in Q1, down from 9.7% in the preceding quarter. The 10.4% vacancy rate recorded in Q3 2023 appears to have marked the peak for supply in this cycle, which bodes well for future rental growth prospects. The City Core prime headline rent increased by 50p quarter-on-quarter to £80.00 per sq ft in Q1, while the City Tower Rent reached £115.00 per sq ft.