We are pleased to share with you our latest insights report with the focus on the Mayfair and St James’s office markets, covering the first half of 2024. This report provides a comprehensive overview of the current market dynamics, including leasing activity, rental trends, and the availability of office space.
Key Highlights from the Report:
Leasing Activity:
- The total leasing activity in the Mayfair and St James’s markets has decreased significantly—a 57% drop in H1 2024 from the previous six months.
- A notable decline is leasing of larger spaces, while demand for smaller spaces below 5,000 sq ft remained steady.
Sector Trends:
- The Financial sector continues to dominate leasing activity, accounting for 60% of the total space leased in H1 2024.
- The Legal and Technology sectors have seen reduced activity compared to recent years.
Office Availability:
- Availability of office space in Mayfair and St James’s has increased by 19% since the end of 2023.
- Despite this rise, the availability of Grade A space remains relatively low, making it a competitive market for high-quality office spaces.
Rental Trends:
- Prime Grade A rents have stabilised at £160.00 per sq ft, and super prime rents remain high at £200.00 per sq ft at the end of Q2 2024.
- With limited Grade A availability, we anticipate further upward pressure on rents over the next 18 months.
As the market evolves, we expect to see more businesses seeking top-quality, sustainable office spaces. The report also highlights emerging opportunities for tenants, including pre-leasing and negotiating favourable terms for refurbishments and fit-outs.
If you have any questions or would like to discuss the report in more detail, please feel free to contact us directly.
