The past 12 months has been a period of mixed fortune for prime office rents across the Eastern M25. Values have recovered in Docklands and the South East London & Kent markets have grown by 5-10%, rising to £55.00 per sq ft and £28.50 per sq ft respectively. Outside of these two markets, East London prime rents have fallen back to £40.00 per sq ft, levels last seen in 2017. Prime rents in Essex and North London & Herts have remained stable at £28.00 and £28.50 per sq ft respectively. Rents in both the Essex and North London & Herts market are 13.8% and 5.0% below their previous peak levels.

Average prime office rents remained stable at their 2024 starting levels in Q1 2025, with most locations seeing values consolidate. In the 12 months to the end of Q1 2025, rents have moved up by 1.0% on average, with the most significant adjustments being seen in the Outer M25 locations, where values are up by 2.8%. The average office rent in Inner M25 locations is down by 0.5% over the year, primarily due to the slipping of prime rents in the Stratford market.

Four of the 16 locations in the Glenny Rent Survey have recorded increases in prime rents over the past 12 months, with Basildon recording the largest increase at 11.1% and Maidstone seeing values improve by 8.7%. Prime rents across the Eastern M25 office market have still risen on average over the past 10 years, rising by 26.3% over the period, an increase of 2.4% per annum. However prime values have slipped back from their post pandemic peak, reducing by 5.3%.

Owner occupier capital values per sq ft have started to show early signs of improving, with values rising by 1.3% in the 12 months to the end of Q1 2025, although this follows the sharp declines seen in Q3 2023/Q1 2024. The majority of growth has been focused towards the Outer M25 locations, where values are up by 4.2% on average. Prime owner occupier capital values in Inner M25 locations slipped by 1.0% on average.

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Key Contact

John Bell

Equity & Managing Partner, Head of Commercial Agency

020 3141 3500
[email protected]