The past six months has been a period of mixed fortunes for prime office rents across the Eastern M25.  Values have recovered in Docklands and the South East London & Kent markets have grown by circa 5%, rising to £52.50 per sq ft and £28.50 per sq ft respectively.  Outside of these two markets, East London prime rents have fallen back to £40.00 per sq ft, levels last seen in 2017.  Prime rents in Essex and North London & Herts have remained stable at £28.00 and £28.50 per sq ft respectively.  Rents in both the Essex and North London & Herts market are 13.8% and 5.0% below their previous peak levels.      

Average prime office rents have improved slightly over the past six months, although this follows a significant weakening in the previous six months period.  In the 12 months to the end of Q3 2024, rents have slipped by 4.8% on average, with the most significant adjustments being seen in the Inner M25 locations, where values are down by 8.1% (0.5% over the six month period).  The average office rent in Outer M25 locations are down by 0.5% (up by 2.8% over the past six months) over the comparable period.  

Four of the 16 locations in the Glenny Rent Survey have recorded increases in prime rents over the past six months, with 11 locations remaining stable.  Only one location, Stratford, has seen rental values slip, with prime rents down to £40.00 per sq ft. 

The strongest upturn in rents have been seen in Basildon and Maidstone, where prime rents are up by 11.1% and 8.7% respectively with both locations attracting rents of £25.00 per sq ft.

Owner occupier capital values per sq ft have started to show early signs of improving, with values rising by 1.3% in the six months to the end of Q3 2024, although this follows the sharp declines seen in the last quarter 2023/first quarter 2024.  Over the 12 month period as a whole, owner occupier capital values are down by 8.4%, with the most significant declines being seen in Inner M25 locations.

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Key Contact

John Bell

Equity & Managing Partner, Head of Commercial Agency

020 3141 3500
[email protected]