Why data intelligence now determines who secures the best space in London
The London office market is now facing a real shortage of quality space. While the overall vacancy rate is about 10%, this number does not tell the full story. In the City of London, the Grade A vacancy rate has dropped below 3%, and Knight Frank analysts expect it could hit zero by 2028. Rents in the City Core have climbed past £100 per square foot, which would have seemed impossible just a few years ago. In the West End, top spaces now go for £160–£185 per square foot, and some deals are even topping £200 per square foot.
This is the reality businesses face when looking for office space in London today. The challenge is growing: only about 1.2 million square feet of new office space is expected to be finished in 2026, which is 40% less than in 2025. Around 70% of that space is already pre-let before construction is even done.
In this market, getting a top location on good terms – or missing out- often depends on having the right information before others do.
Power of data in commercial property searches
When companies see that London’s office vacancy rate is about 10%, they often think there is plenty of space, time to decide, and room to negotiate. But for those looking for quality offices, the reality is the opposite.
Most of the extra space behind the headline number is in older, outdated buildings that over 80% of today’s businesses would not consider. In the City and West End, new buildings have had vacancy rates below 1%, and overall Grade A space in central London is well under 3%.
Hidden challenges behind the vacancy numbers
Several market forces are compounding this shortage:
Between 2018 and 2023, London lost the equivalent of 28 Gherkin buildings’ worth of office space as developers converted offices to hotels, flats, and student accommodation
EPC regulations require all commercial properties to achieve at least an EPC-B rating by 2030 – placing more than 80% of UK commercial stock at risk of unlettable without major investment
Construction pipelines remain constrained by high build costs, rising yields, and a development cycle of up to 10 years from conception to completion
Major occupiers – including BlackRock, Microsoft, and PwC – are searching for space years earlier than normal, further tightening availability before leases even approach expiry
For companies needing efficient, compliant, and well-located offices, the competition has already begun – even if most people do not realise it yet.
Power of data in a constrained market
Technology has changed the way we find available office space. Relying only on public listings and brokers now gives just a limited view of what is truly out there.
Our proprietary platforms scan both marketed and off-market opportunities, creating a comprehensive view across submarkets before they reach the wider market. This matters because the best deals – the ones that combine location, quality, and commercial terms – rarely wait for public listings. They are agreed in advance, often through early relationships and intelligence networks that conventional search methods never reach.
Combining online and offline data is what makes this approach work. Digital listings show a wide range of options, while our systems also find properties that never appear publicly. For example, one client used our data to study lease trends and future availability in their chosen area. With this information, they cut their occupancy costs by 20% on a lease – something they would not have found using traditional search methods.
Levelling the playing field in negotiations
Landlords have usually had more information than tenants. With Grade A space so limited, this gap is bigger than ever—unless tenants come prepared with the right data.
Before any negotiation, our clients review detailed analytics on similar properties, past pricing trends, and landlord concession patterns in specific areas. This changes the whole process. Instead of relying on guesswork or general market knowledge, tenants can see exactly where they have leverage, which landlords may soon have empty space, which buildings have been listed the longest, and what terms others have secured on similar deals.
It is important to remember that value in today’s market is not just about rent. Because Grade A space is so scarce, some tenants are looking at older buildings in key locations. Those who act quickly can get real benefits, like better improvement packages, longer rent-free periods, and more flexible break clauses from landlords who want certainty. These perks vanish as soon as other bids appear.
Our systems use machine learning to spot patterns in submarkets, buildings, and occupier behaviour. This helps clients see which terms they can realistically achieve. In tough negotiations, especially in the crowded City and West End markets, this detailed insight often makes the difference.
Speak to our team to review your options and look at a strategy forward. Reach us on +44 20 3514 8865 or send us a message below ↓
Predicting movements: the future of property intelligence
One of the most valuable tools in today’s market is predictive intelligence. By looking at thousands of data points across different areas, our systems can predict occupier movements and availability trends, giving clients useful advance notice.
Many large companies now struggling to find the right space started their searches based on old market trends. For example, BlackRock, the world’s largest asset manager, began looking for a new 300,000 square foot London office ten years before its current lease ends. Its CEO has said it is very hard to find anything suitable. Microsoft has also been searching for 200,000–250,000 square feet of office space in London without success. These examples show that demand for good space is much higher than supply, and new buildings cannot be delivered quickly enough because of economic and planning delays.
For institutional investors, our predictive tools offer insights into portfolio performance that go beyond standard measures. They can spot properties likely to see tenant turnover or rent pressure before these trends become widely known.
For businesses looking to acquire space, the real value is spotting new opportunities before others do. Pre-let deals, where tenants commit to space before it is finished, are now more common because forward-looking intelligence is the best way to secure top locations.
Bespoke intelligence for different business needs
While standardised platforms offer market-wide data, our systems are tailored to each client’s specific sector, submarket, and strategic objectives.
A financial services firm planning to consolidate before a lease event needs different information than a tech company growing quickly before a funding round. The important data, the submarkets to watch, and the best negotiation tactics will be very different for each.
This customisation extends to integration with clients’ existing systems through our Tera portfolio and lease management platform. Property decisions do not sit in isolation from business strategy – they affect headcount planning, financial modelling, and long-term operational costs. Our technology connects these elements, ensuring real estate choices align with organisational objectives rather than creating constraints.
Technology enhances expert judgement
Our best results come from combining data intelligence with the experience of professionals who can put the data in context. Technology finds the opportunities, but expert judgment decides which ones to pursue and how.
In a market as segmented as London’s current office landscape, where outstanding secondary space at the right submarket can outperform a nominally superior building in the wrong location, that interpretive layer is essential. Averages mislead. What matters is a precise understanding of actual availability in the specific areas that work for a given business, at the specific moment that business needs to act.
Looking forward, we expect the market to stay challenging for some time. New developments will not ease the supply shortage until late in the decade at the earliest. If your business has a lease event coming up – like a break, expiry, or review – now is the time to start gathering market intelligence.
Generic approaches and advice based only on publicly accessible data will yield generic results, or no results at all. Bespoke technology, combined with deep market relationships and experienced professional judgment, is now the baseline requirement for any business serious about its property strategy.
In a market where information is key, the companies that act first and have the best data will get the spaces that shape their future. Others will be left to compete for what is left.
We’ve helped hundreds of clients to find, negotiate, secure and optimise their office space. Please reach out to the team if we can help review your lease to understand when your window opens and the best route forward.
