Several London sub-markets have posted notable growth in flexible office rents over recent months, even as deal times drag and hold take-up back, according to CBRE.
In its latest Flex Market Update report, the agency said the most substantial increases in prime flex rents in the final quarter of 2023 were in King’s Cross and Paddington.
In King’s Cross the highest rent achieved was £270 per sq ft, with an average of £260. In Paddington the peak was £330 with an average of £270.
Also on the up were the City core and Soho, with top achieved rents of £250 and £270 per sq ft respectively.
Rates in Covent Garden rose to an average of £240 per sq ft, CBRE said, driven by an increase in smaller transactions.
In some sub-markets, however, falling supply and demand have driven rents down. In Shoreditch and Old Street the average is now £180, and in Clerkenwell and Farringdon £170.
“Take-up for Q4 was recorded at approximately 150,000 sq ft,” the agency said. “This number was lower than forecasted due to deals taking longer to close than anticipated and transactions moving into 2024.”
Image from CBRE
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