Central London’s office market continued to strengthen in the second quarter of 2026, with take-up reaching 2.46 million sq ft and the volume of space under offer surging to its highest level since 2007, according to the latest Central London office data from Cushman & Wakefield.
Marketbeat Central London Offices report reveals that office take-up rose 28% quarter-on-quarter to 2.46 milion sq ft, broadly in line with the five-year average, with 77% of activity concentrated in grade A space. The West End led leasing activity with 1.11 million sq ft transacted, followed by 989,000 sq ft in the City and 324,000 sq ft in East London.
The strongest indicator of market confidence came from the volume of space under offer, which climbed by 51% quarter-on-quarter to 4.44 million sq ft, the highest level since 2007. The increase was driven primarily by large occupiers targeting the Wider City and Canary Wharf markets, with several major requirements progressing through lease negotiations.
Occupiers Moving Early Amid Tightening Supply
“The record volume of space under offer is a clear sign of occupier confidence. Businesses may be taking longer to make decisions, but they are still committing to London and increasingly beginning their searches earlier to secure the best grade A space before supply tightens further, this is further evidenced by five off-plan pre-lets in 2026, either committed to or under offer” said James Campbell, International Partner and Head of London Offices Leasing at Cushman & Wakefield.
Technology occupiers were a driving force in the market, accounting for 25% of H1 take-up, with AI businesses alone responsible for close to 60% of that space – a 15% share of total take-up across Central London. Notable deals included Anthropic’s 160,600 sq ft letting in Euston and OpenAI’s 90,000 sq ft commitment in King’s Cross. However, Cushman & Wakefield anticipates that take-up in the second half of the year will be underpinned by financial, professional services and legal occupiers.
Larger Lot Sizes support Capital Markets Activity
Investment activity improved in the second quarter, with £2.06 billion of office assets traded, up from £1.94 billion in Q1 and bringing H1 volumes to £4.02 billion. While this remains 15% below both the H1 2025 and five-year H1 averages, momentum is building.Larger lot sizes continue to attract investor interest with twelve transactions exceeding £100 million completed during H1, accounting for more than half of total investment volume.
Chris Bennett, International Partner and Head of London Offices Capital Markets at Cushman & Wakefield, said: ”The first half of the year saw an increasing shift towards investments with scale, with larger lot sizes driving more than half of all activity. UK buyers led the way, but strong international capital from Europe, North America and Asia Pacific, together with increasing activity from institutional capital seeking core returns, speaks to the conviction that is returning to this market. With £3.13 billion of assets now under offer, almost £1 billion increase on Q1, we expect deal volumes to keep building through the second half of the year.”
Prime office yields held steady across Central London in Q2, with City yields at 5.5% and West End yields at 3.75%. While immediate compression remains constrained by ongoing geopolitical volatility, Cushman & Wakefield continues to forecast yield compression over the medium term.
