Key Points
- Savills said 2.2 million sq ft of office leases were transacted in Central London in Q1 2026, up 6% year on year.
- Pre-lets accounted for around a third of the space acquired, while Grade A space made up 92% of total take-up.
- Active demand for office space in Central London reached a record 14.6 million sq ft, 57% above the 10-year average.
- Almost half of occupiers, 47%, were seeking to increase their footprint, and all new demand recorded in Q1 came from occupiers looking to expand.
- City rents hit a record £160 per sq ft, pushing the average prime rent in the City to £130.80, up 40% on Q1 2025.
- West End prime rents stayed unchanged year on year at £165 per sq ft.
- Central London office investment turnover reached £1.79bn, down against five-year and ten-year averages.
- Despite lower turnover, there were 48 deals in Q1, and £2.78bn of deals were under offer across 52 assets, including eight above £100m.
- Philip Pearce of Savills said momentum was building in the Central London office market, with more businesses looking to grow their space.
- Oliver Bamber of Savills said the high deal count and large stock under offer were reasons for cautious optimism for the rest of the year.
London (The Londoner News) May 6, 2026 – Central London office leasing gained pace in the first quarter of 2026, while occupier demand climbed to a fresh record and prime rents in the City reached new highs, according to Savills research released on Wednesday.
What did Savills say about Q1 take-up?
Savills said office leases transacted in Central London totalled 2.2 million sq ft in the first quarter, which was 6% higher than the same period last year.
The firm said pre-lets made up around a third of the space acquired, underlining continued demand for newer high-quality stock. It also said Grade A space represented 92% of total take-up, showing occupiers continued to favour better-quality buildings.
Why is active demand rising?
Savills reported that active demand in Central London reached 14.6 million sq ft, a new record and 57% above the 10-year average.
The research also showed occupiers remained upbeat about future space needs, with almost half, or 47%, seeking to increase their footprint. Savills added that every new demand recorded in Q1 came from occupiers looking to expand rather than contract.
Which areas saw rental records?
The City recorded a new rent high of £160 per sq ft, according to Savills. That lifted the average prime rent in the City to £130.80 per sq ft, a figure Savills said was 40% higher than in Q1 2025.
In the West End, prime rents were stable year on year at £165 per sq ft. The figures point to a market where top-end space remains scarce and highly competitive.
What happened in the investment market?
Savills said Central London office investment turnover came in at £1.79bn in Q1, down 37% on the five-year average and 44% on the ten-year average. Even so, the market still logged 48 deals, which was 3% above the short-term average and ahead of the 42 deals completed in Q1 2025.
Savills also said £2.78bn of deals were under offer across 52 assets, including eight deals above £100m, marking the highest amount of stock under offer for a first quarter since 2022.
What did Savills executives say?
As reported by Savills, Philip Pearce, Executive Director in the Central London Agency team, said:
“Momentum is continuing to build in the Central London office market, with more businesses looking to grow their space contributing to improved stats on last year. We’d expect to see more deals happening throughout the rest of the year as occupiers look to take high-quality space.”
As reported by Savills, Oliver Bamber, Director in the Central London Investment team, said:
“Although total turnover is down on the short and long-term averages, we’re optimistic that the relatively high deal count shows that there is still appetite for trades. With a high number of assets under offer, including some of the larger lot sizes, there are reasons to be cautiously positive for the rest of the year.”
What does this mean for the rest of 2026?
The data suggests Central London remains a two-speed market, with the strongest demand concentrated in modern, high-quality office stock. Strong take-up, record active demand and rising City rents indicate that occupiers are still willing to pay for prime space.
At the same time, weaker turnover shows that investors are being more selective, even though the volume of deals under offer points to continued interest.
How should readers interpret the market trend?
The broader picture is one of resilience rather than a broad-based boom. Occupiers are expanding, pre-lets are taking a meaningful share of space, and Grade A offices are dominating demand. For investors, however, the market is still constrained by uneven turnover and a preference for only the best assets.
The result is a Central London office market that is moving forward, but with gains concentrated in the highest-quality buildings and strongest locations.
