Prime West End rents reach new record high in Q1

02 May 2017

Average prime West End rents hit £122.30 per sq ft (£1,316 per sq m) in the first quarter of 2017, 11% above the levels seen in 2016 and exceeding the previous quarterly high of £114.31 per sq ft set in Q4 2007, according to Savills.

The international real estate advisor says that a record rent of £190 per sq ft (£2,045 per sq m) achieved in March at 5 St James‘s Square helped push the Q1 average prime rent to 11% above 2016’s average prime Grade A rent of £110.41 per sq ft (£1,188 per sq m). Similarly, the average Grade A rent in Q1 2017 hit £85.03 per sq ft (£915 per sq m), 10% above 2016’s Q1 average of £77.25 (£831 per sq m).

West End Q1 2017 take up reached 1.05 million sq ft (97,545 sq m), 1% up on Q1 2016 and 10% above the 10 year average. The tech and media sector was the most active in the market, accounting for 22% of take up, followed by professional services (19%) and insurance and financial services (16%). Savills says supply remains fairly stable, standing at 4.63 million sq ft (430,127 sq m) at the end of the quarter. This equates to a vacancy rate of 3.8%, its third month at this level.

Key deals include Conde Nast Publications acquiring the 9th floor totalling 26,836 sq ft (2,493 sq m) at The Adelphi, WC2 on a 10 year lease at a rent of £79.50 (£855 per sq m). Elsewhere, at Aberdeen Asset Management‘s 12 Hammersmith Grove, W6, Medidata acquired the top 9th and 10th floors totalling 29,106 sq ft (2,704 sq m), at a sub-market equalling rent of £59 per sq ft  (£635 per sq m).

Brian Allen, director of the West End leasing team at Savills, comments: “The first quarter of the year has seen strong take up and rental levels in the West End, with the deal at 5 St James‘s Square helping prime Grade A rents to hit a ten year high. Whilst headline rents remain strong there is some upward pressure on the level of incentives being offered to tenants, with the average rent free period on a 10 year lease now 18 months, compared to the average of 13 months in Q1 2016. Nevertheless, the market remains robust.“


General Enquiries

Head Office London


Key Contacts

Brian Allen

Brian Allen

Office Agency

Head Office London

+44 (0) 20 7409 8778