Knight Frank – M25 & South East Market Report, Q3 2024

Knight Frank's M25 & South East Market Report for Q3 2024 indicates a consistent demand in the South East office market, with leasing volumes reaching 866,000 sq ft, aligning with the 10-year quarterly average. The report highlights that 79 occupier deals were completed during the quarter, the highest number so far in 2024 and well above the long-term quarterly average of 63. Notably, take-up in every quarter of 2024 has been above 800,000 sq ft, marking the first year since 2019 with such consistent activity. The development pipeline remains limited, with 1.8 million sq ft of speculative office space under construction, primarily concentrated in West London and Cambridge. Investment volumes totaled £237 million in Q3, a 70% increase compared to the same period in 2023, though still 65% below the 10-year quarterly average. Prime yields remained at 7.00%, with pricing at the top end of the market unchanged throughout 2024.