The Eastern M25 office market has shown some signs of improvement over the past 12-15 months albeit from a very low base. Activity in 2024 was 15% higher than the previous 12 months, with activity of 1.3m sq ft and all of the Glenny sub regions registering an increase in take up.

The most significant upturn was registered in the East London and Docklands market, where there are signs that disruptor finance groups and educational establishments forming clusters. Revolut and Zopa have both taken space at Canary Wharf, whilst UCL and Huddersfield University have taken space at Chimney Walk on Sugar House Island E15.

Supply also continues to be focused towards the East London and Docklands markets, which account for almost 55% of the overall available office floor space across the Eastern M25 region. Grade A supply is even more biased towards the East London & Docklands market, accounting for almost 80% of stock on the market, although there are several new specialist life science buildings that have come to the market in recent months at British Land’s Surrey Quays development and the new Riverlabs scheme in Ware.

The most significant addition to grade A office space over the past six months has been the completion of the Dock Shed in Surrey Quays, which adds 180,000 sq ft to supply. The availability rate across the Eastern M25 market stands at 9.3%, just above the long run average for the region, which stands at 7.9%.

Prime rents across the region have begun to show early signs of improvement, rising by 1.3% on average over the past 12 months but values are still below their post pandemic peak.