London's Office Market Plunges into Recession as Vacancies Soar and Property Firms Face Rating Downgrades
Originally Published 2 years ago — by CNN
London's office market is experiencing a "rental recession" as the share of empty office space reaches its highest level in three decades, with vacancies in the City of London and the West End at their highest in 30 years. Canary Wharf, a newer financial district, has seen vacant units exceed 20%. The persistence of remote work has led to a 20% decrease in office utilization since the end of 2019. Investment bank Jefferies downgraded the stock of four big-cap property developers, citing falling rents and reduced pricing power for landlords. Meta (formerly Facebook) has paid $181 million to break its lease on a London office, while HSBC and other banks are also downsizing their office spaces. The downturn in office rentals contrasts with high demand and low supply in London's residential rental market.
