CoStar Data Shows London Demand for 4 Star Offices Topping 40% in the City Core despite Top-Quality Space Shortage

LONDON, October 29, 2026--( BUSINESS WIRE )--London City Core saw an increase in office demand, as vacancy rates for best-in-class space fall to 2.1% , according to data from CoStar , a global leading provider of online real estate marketplaces, information and analytics in the property markets.

The Square Mile has accounted for over 42% of Central London demand for 4-Star offices so far in 2026, compared with just 18% for 5-Star offices.

"The strength of the flight-to-quality trend, a fundamental part of which is location quality, has created such tightness and high rents at the top end that demand has begun to spill over into good-quality refurbished stock that meets modern occupiers' needs," said Patrick Scanlon, senior director of market analytics at CoStar Europe.

The vacancy rate for 5-Star offices in the City Core has fallen to just 2.1% on a three-period trailing average, the lowest level in the past 15 years and significantly below the comparable figure of 6.7% for Central London.

"This is particularly important, given that over 12 million square feet of new office space has been delivered in the submarket over the last 10 years, equating to more than 35% of new deliveries in Central London," said Scanlon.

Headline rents have also reached new highs, with rents exceeding £150 per square foot already achieved on the upper floors of newly delivered towers at One Leadenhall Street and 8 Bishopsgate, while rents in prime, non-tower spaces are likely to exceed £130 per square foot.

The full analysis can be found here .

For more information about the company and its products and services, please visit www.costargroup.com .

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group's major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia's leading property marketplaces. CoStar Group's industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Zonda, a leading provider of data, analytics, software, and marketplace solutions for the residential construction industry; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.