West End Leasing
Q3 2026 sees the office leasing market continuing at pace in the West End. Year to date take up has increased 31% from the same point last year with occupier activity continuing to increase throughout the year. This recent demand spike has been notably spearheaded by the Tech/Media sector. AI businesses accounted for 0.75m sq ft of take up so far in 2026, with market leading businesses such as Microsoft AI, Open AI, Anthropic and Humanoid all securing new London HQ premises.
In addition to the AI take up phenomenon, financial businesses have also been very active through the quarter in core Mayfair / St. James’s locations, driven on by an ever-dwindling supply pipelines early commitments at high headline rent levels continue to be seen in the core. The highest rental deal done in Q3 was £200.00 per sq ft, but there are several deals under offer that are moving into £250+ territory creating a new prime benchmark level for the very best new spaces available.
The demand for fully fitted and furnished spaces continues at pace. We are seeing the market respond to this with Landlords committing to fit-out ever larger spaces, previously considered too big to undertake speculative CAT B build outs effectively. Now over 70% of deals of sub 10,000 sq ft are for space where the occupier is not required to fit-out.
Headline Market Deals
The Elephant, 318 Oxford Street, W1 46,533 sq ft
Pre-Let to General Atlantic & Actis who have secured pre-lets across 3 floors in this landmark redevelopment of the former House of Fraser department store.
Film House, 142 Wardour Street, W1 94,239 sq ft
Letting this HQ development to Microsoft AI in its entirety – one of the largest single lettings in Soho in several years.
1 Rathbone Square, W1 68,022 sq ft
Letting of surplus META office space secured by the United Talent Agency at a competitive passing rent equating to £83.00 per sq ft.
What is the Direction of Travel?
As we move to the end of 2026 it is anticipated that the West End leasing market will continue to go from strength to strength. Several deals currently in negotiations should reach a conclusion, setting new rental benchmarks for the premium end of the market.
However, it is important to consider that there are headwinds that have potential to curtail the markets progress. Increasing costs of fitting out and lack of new supply pipeline are driving some larger occupiers to renew in existing buildings following active searches. A good recent example of this is Spotify who ultimately decided to remain on 80 Strand following a period of being linked with several new buildings in the marketplace.
