London office rents surge 41% as Southern Fringe leasing hits nine-year high

Supply shortages are turning London's office market into a landlord's paradise. CoStar data shows leasing in London's Southern Fringe reached its highest level since 2016, when Apple pre-let nearly 500,000 square feet at Battersea Power Station. City Core prime rents jumped 41.4 percent to £102.50 per square foot since 2019, while West End rents hit £185 per square foot, up 60.9 percent as property data shows. Construction activity fell to a 13-year low in 2025, creating a supply crunch that forces occupiers to pay premiums for Grade A space. Alternative investment firms now pay 24 percent above prime rents and commit to 12-year terms on average, signaling confidence that London's office shortage will persist despite hybrid work trends.