Central London’s office market sees strong start in January with £1 billion in investment deals

The central London office market had a strong start to 2025, with £1 billion in investment transactions and 248,600 square feet of office space leased in January, according to a report by CBRE. The figures reflect growing investor confidence and sustained demand for high-quality office spaces, following a period of economic uncertainty and shifting workplace trends.

Investment activity in January was driven by several large transactions, signaling renewed interest from both domestic and international investors. The demand for prime office properties remains particularly strong, with institutional investors seeking assets that offer long-term stability and the ability to attract high-quality tenants.

Leasing activity also performed well, with 248,600 square feet of office space taken up across central London. The demand was largely focused on Grade A office spaces, with businesses continuing to prioritize high-specification work environments that offer modern amenities, sustainability credentials, and flexible layouts. The flight to quality trend, which has shaped leasing activity in recent years, continues to be a dominant factor as companies look to create attractive workplaces that encourage employee collaboration and well-being.

CBRE’s report suggests that occupier confidence is growing, as businesses look beyond short-term economic pressures and focus on securing office space that aligns with their long-term strategies. With more investment expected in the coming months, the momentum in the office market could continue to strengthen throughout 2025.

Source: CBRE