London City Core five-star office vacancy falls to 15-year low of 2.1%, CoStar says
XLRE•Five-star office vacancy in London’s City Core fell to a 15-year low of 2.1%, compared with 6.7% across Central London. The City Core accounted for over 42% of Central London’s four-star office demand in 2026.
1. Vacancy and demand
Five-star office vacancy in London’s City Core fell to a 15-year low of 2.1%, based on three-period trailing averages, versus 6.7% across Central London. The City Core accounted for over 42% of Central London’s four-star office demand in 2026, compared with 18% for five-star space.
2. Supply and rents
Tight supply and high top-end rents are pushing demand toward good-quality refurbished offices. The City Core delivered over 12 million square feet in 10 years, representing more than 35% of Central London’s new supply. Upper-floor rents in newly delivered towers exceeded £150 per square foot, while prime non-tower rents are likely to exceed £130 per square foot.
