Record rents for London offices as supply is squeezed

Updated: 08:57, 17 August 2026 Office rents in London hot spots look set to hit record highs as companies faced with the capital’s supply squeeze compete for space. Forecasts compiled for the Daily Mail by property consultancy Carter Jonas suggest that typical rents for ‘best- in-class’ offices in the prime West End districts of Mayfair and St James’s will hit £200 per square foot by the second quarter of next year. Average rents in grade-A offices in the heart of the City are on course to reach £100 per square foot, the forecasts suggest. The soaring prices come as businesses scramble to sign up for buildings that are still under construction to secure space ahead of rivals and to accommodate their growth plans. Squeezed: Rental prices for London offices have soared amid constrained supply Carter Jonas’s analysis shows that typical rents for prime property in the West End now stand at £180 per square foot, having risen more than 60 per cent over the past five years. Rents in the Square Mile’s prime banking and insurance district now average £92.50 per square foot – up 32 per cent over the same period. Michael Pain, head of Carter Jonas’ London tenant representation team, said rental growth is being driven by ‘robust demand, limited choice and constrained supply’. He added: ‘It is likely to be the beginning of the next decade before supply catches up with demand.’ New rent benchmarks have been achieved in the Square Mile over the past year, including a reported record £160 per square foot agreed by tech firm Ripple for the top floor of Brookfield Properties’ One Leadenhall skyscraper. Post-Covid, many companies are seeking buildings that ‘have good transport links, can attract employees, and that offer social and wellbeing spaces that can’t be replicated at home offices’, said Merrik Baggallay, managing director at real estate investment firm BGO. Real estate consultancy Knight Frank estimates total active demand for London offices is 14.3m sq ft, up from 10m sq ft a year ago. Shabab Qadar, Knight Frank’s head of London research, said: ‘For many businesses, the office is now as much a tool for attracting and retaining talent as it is a place to work, placing a premium on schemes that promote employee wellbeing, collaboration and productivity.’ Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. 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