Vacancy rate of office real estate in London 2018-2023, by area

Vacancy rates are a measurement of unoccupied properties during a given period. Vacancy rates are a good indication of an area’s desirability and opportunity for development. High vacancy rates can indicate an economic downturn, a lack of demand, or possibly that standards do not meet speculative renters’ needs. Low vacancy rates are, in general, considered a good thing as it means there is a good level of demand from customers, although low vacancy rates may also indicate a need for more development which is not being met.

Prime rents

Prime rents for office space in London ranged between 30 British pounds and 150 British pounds per square foot in 2023. London also had the highest prime rents per square meter of any city in Europe.

Prime yields

Yields measure the amount of the expected income on investments made as a percentage. Yields consider the cost of buying a property, its running costs, and the income generated through renting the property. Yields grow or decrease based on occupancy rates of the area and industry, as well as demand and confidence. In 2023, prime yields for office property in London were the lowest in Mayfair and St. James'.