Central London office lettings are forecast to hit around 8.5 million sq ft this year, well below pre-2020 figures but pointing towards a new post-Covid 'normal', according to latest research.
Property consultancy Cushman & Wakefield said if its 2023 estimate is met that would put the performance in line with 2021 figures, although it is lower than last year when companies were catching up on deals following pandemic disruption.
The number is also under the 11.6 million sq ft and 12.5m sq ft agreed in 2019 and 2018 respectively.
In the third quarter just done, deals for high quality grade-A space have been dominant and total take-up was 14% ahead of the five-year quarterly average.
The City market reported the biggest increase in leasing activity, making up 64% of overall volumes during the three month period.
Ben Cullen, Cushman & Wakefield's head of UK offices said occupier demand "remains robust".
He said the annual estimated figure comes despite a challenging business environment, and "indicates a healthy occupational market".
Heena Gadhavi in the firm's UK research and insight team, said: “As businesses attempt to find the balance in a hybrid working environment, the imperative lies in both high-quality spaces that increasingly meet ESG demands, alongside assets that are priced sensibly."
