Vacancies in the core City of London market fell to 9.6 percent in the first quarter of 2026, their lowest level since mid-2020, according to data from CoStar.
Vacancies in the Square Mile have been trending downwards since the second half of 2023, with much of the new space coming to market being absorbed by tenants seeking the best space in the best location. This contrasts with the wider London trend, which averaged 11.4 percent and saw vacancies plateau during the same period.
Demand remains heavily focused on high-quality office, with tenants largely seeking to dispose of secondary stock. In the City core market, annual net absorption for the best-quality stock (rated four- and five-star) is 2 million square feet (186,000 square meters), compared to minus 150,000 square feet (14,000 square meters) for three-star stock.
During the past 12 months, absorption has received a boost from the delivery of new stock such as 1 Broadgate, where British Land and GIC pr
