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London Office Market | Q2 2026

Explore the latest data on London office rents, leasing activity, and market forecasts in this comprehensive Q2 2026 update. Download now to understand how global trends and local supply constraints are shaping opportunities for tenants and investors.

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Report summary

The Q2 2026 report paints a broadly optimistic picture for the London office market, despite ongoing global political uncertainty.

Demand for high-quality, sustainable Grade A office space continues to outstrip supply, particularly across the West End, Midtown and the City.

As a result, prime rents remain at historic highs and landlords retain a strong negotiating position.

At a glance

Demand is being driven primarily by the financial services and AI/technology sectors, which account for many of the largest leasing transactions during the quarter.
New development pipelines remain constrained due to planning restrictions, higher finance costs and rising construction costs.
Limited supply of Grade A space is expected to continue until at least the beginning of the next decade.

Prime rents continue to increase, particularly in Mayfair & St James's, where rents have risen by more than 63% over the last five years.
Canary Wharf continues its resurgence, supported by major commitments from JP Morgan, Barclays and PwC.
Sustainability credentials remain a critical factor in occupier decision-making, with demand increasingly focused on EPC-compliant and highly accredited buildings.

Commentary

The London office market remains resilient, with demand for high-quality Grade A workspace continuing to outpace supply. Strong leasing activity from financial services and AI occupiers is supporting rental growth, particularly in core West End and City locations.

Development pipeline

A constrained development pipeline, driven by planning restrictions, higher construction costs and financing pressures, means occupiers are facing reduced choice and are increasingly committing to pre-let space well in advance of occupation.

Canary Wharf

Canary Wharf continues to strengthen as a cost-effective alternative to central locations, benefiting from major occupier commitments and improved connectivity via the Elizabeth Line.

Sustainability

Sustainability remains a key differentiator. Buildings with strong environmental credentials are attracting the highest levels of demand, while older, less energy-efficient stock faces growing leasing challenges.

Occupiers

For occupiers, early planning, flexibility on location and a focus on sustainable accommodation will be essential to securing the right space and managing occupancy costs in an increasingly competitive market.

Get the complete Q2 2026 report