London Market Report

Active Deals

Outlook

Neutral

London is the UK's largest and most liquid commercial real estate market, with investor focus concentrated on well-located offices and assets that meet sustainability and quality requirements.

Yields & Returns

Office yields vary by submarket and building quality, with multi-let assets often priced based on reversion potential and lease-event risk.

Vacancy & Supply

Vacancy Rates

Vacancy is generally lower for best-in-class, highly amenitized and ESG-aligned offices, while secondary stock faces higher vacancy and incentive levels.

Supply Pipeline

New delivery is influenced by planning, construction costs and pre-leasing, with refurbishment a key supply channel in central submarkets.

Competitor Activity

Capital is being deployed selectively into central London office assets where buyers see pricing dislocation and recovery potential.

Firm	Activity	Asset	Detail	Value
Astra Asset Management	Acquisition	Office	Acquired 16-18 New Bridge Street freehold, multi-let office building in Blackfriars	£17m

Demand Drivers

Professional services, finance, technology and public sector demand, with flight-to-quality dynamics favoring prime buildings.

Rental Market

Prime office rents are supported by limited supply of top-quality space, while secondary rents face pressure from incentives and capex needs.

Employment & Economy

London has a large and diverse employment base anchored by finance, professional services, government and creative industries.

Migration & Demographics

Population growth and international migration influence housing demand and workforce availability.

Transport & Connectivity

Extensive rail, Underground and Elizabeth Line connectivity supports strong submarket differentiation.

Key Risks

Interest rate sensitivity, retrofit and ESG capex requirements, and lease-event risk in multi-let assets.

Outlook 12–24 Months

Neutral outlook with selective liquidity for well-located assets, while repricing and refurbishment requirements continue to shape transaction volumes.

Sources

https://astra-amco.com/news/astra-adds-to-london-office-portfolio-with-17m-dealBusiness Wire: Lone Star 90 Whitfield Street agreement