However, the market is undergoing a significant transformation, driven by a wave of office conversions to alternative uses - a trend that has accelerated since the Covid-19 pandemic.

Conversions for other uses affects office supply

Between 2020 and 2023, approximately 14 million sq ft of office space was converted to alternative uses, representing a 10% contraction in total stock. Since 2023, an additional 11 million sq ft has been acquired for conversion, equating to a further 6% reduction in office supply. This second wave of conversions is particularly notable as it includes higher-profile buildings in both town centre and out-of-town locations. Many of these properties had strong leasing histories, with 65% previously at least 75% occupied during the period 2019-2024. However, shifting occupier preferences have rendered these locations less viable for office use.

Six submarkets are set to lose over 500,000 sq ft of office space. Among these, Brentford, Slough, and Maidenhead are facing the most dramatic changes, with Brentford expected to lose nearly 50% of its office stock. This displacement is already influencing leasing activity - Chiswick Park, for example, has let or placed under offer 92,000 sq ft to former Brentford occupiers in the past year.

Office supply across the region has fallen by 18% since the end of 2023, reaching the third-lowest level on record. The development pipeline is extremely limited, with only one speculative new build currently under construction: Trehus in Maidenhead, offering 60,000 sq ft. As conversions continue and new development lags, supply is expected to tighten further - especially as demand begins to rebound with the emergence of new growth sectors and a more stable economic environment.

Demand and rents on the up

Demand has proven to be resilient post Covid-19 with an average of 2.65 million sq ft being acquired annually since 2020 and take-up increased year-on-year since 2022. In Q1 2025, regional office take-up reached 909,000 sq ft, a 38% increase year-on-year and 16% above the 10-year average. This growth is driven by a “flight to quality,” with corporate occupiers seeking modern, well-connected, and high-specification spaces. However, options are increasingly limited. Across the South East (excluding Greater London), only five prime town centre buildings can currently accommodate requirements over 20,000 sq ft, albeit some markets remain oversupplied.

Tightening supply and strong demand are fuelling rental growth with 16 submarkets seeing record-high headline rents in 2024 with two more achieved in Q1 2025. Notably Reading and Maidenhead saw prime rents grow by over 30% in 2024, driven by lettings at One Station Hill and Tempo. However we believe that the gap between Grade A and prime rents is set to narrow due to the scarcity of prime space. This presents a compelling opportunity for landlords and developers to refurbish or reposition existing stock to meet demand and capture rental growth.

The structural shift in the Greater London and South East office market is reshaping the landscape. For stakeholders, this presents both challenges and opportunities with landlords and developers potentially able to benefit from rising rents by upgrading well-located assets or filling the supply gap with high-quality new workplace offers. With continued tenant displacement and a strong preference for quality, the market is poised for further evolution - and those who adapt quickly will be able to realise significant returns.

Further information

Contact Stuart Chambers or Simon Preece

Market in Minutes: Greater London & South East Offices