Decade-high London office demand presents opportunity for Reits

London office leasing will surge 12 per cent this year due to the highest demand for office space in a decade, a leading UK real estate broker has predicted. However, a fifth of this activity could be from tenants downsizing, and those who will move only want new or refurbished stock, presenting a challenge for the UK’s big office real estate investment trusts (Reits).

According to Knight Frank, tenants will sign for 12mn square feet (sq ft) of office space this year, a return to the long-term average and a jump from the 10.7mn sq ft leased in 2023. The estate agency said the 11.9mn sq ft of “active requirements", which refers to the amount of London office space tenants tell agencies they need, is the highest since 2014.

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