Analysts caution against reading the headline figures in isolation. Demand for older, lower-quality office space is weakening, while appetite for modern, energy-efficient buildings remains robust.
“It has to be remembered that 2025 was a strong year for office demand on our platform, so this quarter’s annual drop is against a high base,” said Louise Sedgwick, commercial director at Rightmove.
“Moreover, the headline statistics don’t tell the whole story. Demand in the London office market is becoming increasingly concentrated on the best-quality office space, with well-located Grade A buildings offering high levels of amenities and strong environmental credentials continuing to outperform.
“On the other hand, secondary office spaces, especially in less attractive locations are struggling. This isn’t just a London story – it’s something that we’re seeing in commercial centres across the country. Indeed, it’s also something that is being reported in major office markets in many European cities.”
Knight Frank’s London research partner Shabab Qadar (pictured right) pointed to data supporting the flight-to-quality trend. “Flight to quality is gathering pace – Q2 take-up reached 3.1 million square feet, up 24% quarter on quarter and 11% above the long-term average, with 70% of activity focused on new and refurbished offices,” he said.