Our Q4 2022 London Offices Snapshot report is now available, and includes insights on the London offices market.
- While London numbers for 2022 were encouraging in the face of a politically and economically turbulent latter half of the year, up by 22% year-on-year, the prospects for 2023 herald an equally challenging environment.
- Prime rental levels will likely continue to see upward pressure in 2023, particularly for premium product, but as voids for secondary space reach a peak, average rents can expect to be stable at best.
- Investment volumes ended 2022 on a low as economic instability and rising borrowing costs ate away at investor confidence. However, swift pricing adjustments and appropriate responses from vendors should aid a gradual recovery through H1 2023.
- Appetite for premium product remained undimmed in 2022 and with pre-letting activity in the West End rising to a 20-year high. With new EPC regulations coming into force in April 2023, the spotlight will be even brighter on buildings with lower than E Grade certification, or those not up to the increasingly exacting standards set by modern blue chip occupiers.