London Markets: Q1 2024

Take-up was 2.8 million sq ft in Q1, one of the largest quarterly volumes over the last 18 months, driven by several large lettings in the City. Availability fell in Q1, with the rate now at 8.2%. This corresponds to 22.1 million sq ft, marking the lowest volume since Q3 2022. However, refurbishment activity continues to rise, with nearly 3.5 million sq ft anticipated for delivery in 2024. This coupled with nearly 5 million sq ft of new deliveries expected in 2024 means there could be further supply increases depending on the rate of absorption. Investment volumes reached £1.5bn in Q1 across 29 transactions. This was 7% below Q4 and just under a third below the 5-year quarterly average. However, the investment market is expected thaw as pricing expectations are stabilising and signs are that yields have topped out in recent valuation data.