Active demand for London office space hit a four year high in Q3, but we doubt that will drive a decline in vacancy rates. Most of the rise will reflect churn as firms make moves that had been delayed by the pandemic, including those looking to reduce floor space in the wake of the remote work revolution. And with the London jobs recovery now running out of steam the chance of a rise in net office demand is low. That will keep London vacancy rates high and lead to a modest fall in rents next year.
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