Demand for office floor space in the Eastern M25 market remains patchy as businesses continue to wrestle with how best to structure their workplace in the post pandemic office environment.  Despite this uncertainty, take up in 2021 was much stronger than expected, with 1.6m sq ft of lettings recorded, 35% above the previous year’s figure, with several of the Glenny regions seeing activity return to their trend levels of activity.   

Docklands has been the main casualty of the slowdown in letting activity since the pandemic, with only 315,000 sq ft of lettings in 2021, although the first three months of this year has seen a sharp upturn, with Citigroup taking 95,000 sq ft at 40 Bank Street, albeit on a short term basis whilst the US banking group undertakes a £100m refurbishment of their UK headquarters at 25 Canada Square.    

Supply continues to be focused towards the East London and Docklands markets, which account for almost 60% of the overall available office floor space across the Eastern M25 region.  The availability rate in the East London and Docklands market stands at 11.7%, with all other markets at or below 6.0%.       

Prime rents across the region have remained largely stable since the onset of the pandemic but the next 12-18 months offers greater hope with the much awaited launch of the Elizabeth Line bringing benefits to the Eastern M25 office market.