Welcome to our latest MARKET UPDATE Q4 and roundup for 2025, where we share the latest insights into the commercial property market in West London.
This edition features: West London Office Market Trends 2025 – including analysis of occupier demand by sector, deal size and evolving workspace requirements. West London Submarket Activity – key transactions, leasing momentum, and investment highlights across core locations. Business Rates Update & Review – what occupiers and landlords need to know about the new Rateable Values assessment.
OVERVIEW MARKET UPDATE Q4 – Commercial property market overview in West London
The 2025 office market in West London was subdued by previous years performance, particularly compared to central London, where take-up in the prime markets has been strong. Demand was unpredictable with every occupier requirement hard fought over by the landlords. Deal levels were similar to 2023 but down by 27% on the previous year (2024).
So what were the key trends of the west London office market in 2025?
- Occupier Expansion and “Right-sizing”: After a period of downsizing during the pandemic, many occupiers began expanding their office footprints to accommodate returning employees, leading to further activity and take-up.
- Flight to Quality: The phrase keeps recurring, but it’s still true. The dominant trend was a focus on Grade A, amenity-rich and ESG-compliant (EPC B or better) properties. These prime spaces are top of the requirement lists.
- Fitted Offices: We have consistently reported the rising demand for fitted space from occupiers. Our stats show that around 70% of deals last year were on fitted spaces. Tenants clearly want low capex and speed of occupation when moving. In many cases, these occupiers are moving out of serviced or flex space, where this is the norm.
- Increased Requirement Sizes: Despite the overall lower volume of take up, there was a pickup in larger transactions. With the number of deals over 50,000 sq ft rising significantly in the West End, the average deal size across London also increased. West London saw less of this trend but there have been a greater number of larger requirements in the marketplace.
- Stay v Go Decision: Probably one of the most frustrating experiences for the office leasing team is dealing with the occupier who would really like to move but is heavily incentivised by their existing landlord to stay. When it comes to the crunch, it’s the head rather than the heart taking the low-cost option. Stay invariably wins over the Go.
Office Requirements Size Breakdown
We analysed all of the agent led requirements in the market last year to break down the size ranges to see where the greatest activity was. Unsurprisingly, it was the smaller sub 3,000 sq ft requirements that dominated, in line with the letting activity across the market. In the top size 15k+, we saw 40% of this segment being over 30,000 sq ft.
In the investment market, 2025 was probably one of the quietest years with virtually no full income investments sold. The highlight was One Lyric Square, the 100,000 sq ft office in central Hammersmith let to The Office Group (serviced offices). Purchased by French investment vehicle Iroko Zen from Schroders UK Real Estate Fund for £57m (£552 psf) in August 2025. This showed a net yield of 8.79%. The occupier is now trading as FORA provides Hammersmith’s largest serviced and co-working centre.
West London Submarket Activity
KENSINGTON & CHELSEA
A Perfect Deal at the Gramophone Works
Continuing on the success of recent lettings at Gramophone Works in North Kensington, Perfect Moment, the luxury skiwear brand, have taken 7,000 sq ft on the top floor at a headline rent of over £45 per sq ft. Perfect Moment joins recent occupiers, Emilia Wickstead and Kindred Studios. Just 3,500 sq ft on the 4th floor is now available.
In Notting Hill, Beltane and TPG Angelo Gordon are well into the 170,000 sq ft office development of 1 Notting Hill Place, a major redevelopment project of the former Newcombe House site in Notting Hill Gate, transforming it into a landmark mixed-use business district with modern offices, retail and a medical centre, set to complete in the summer of 2027. The project with Squire & Partners as architects, involves refurbishing the existing tower and building new structures, creating a public square and high-quality workspace in this exclusive London neighbourhood.
The refurbished and extended 14-floor tower will offer panoramic views across Hyde Park and London with terraces on every level and a new public square with independent shops and cafes.
Chelsea Wharf, Lots Road, SW10 has had a period of sustained success, recording several lettings last quarter. Establishing itself as a hub for designers and creatives, The Bedford Estate has welcomed Tulio, a luxury interior designer, as well as high-end interiors and luxury brand Valley & Laurel, who are opening their showroom in the central courtyard at the scenic riverside development. They are joined by Augusta Edwards Fine Art; a fine art photography gallery specialising in classical 20th-century and contemporary photography.
https://www.augustaedwards.com/
Interior designer Christian Bense has also recommitted their future to the development by upsizing within the wharf and signing a new lease. The waterfront setting of Chelsea Wharf offers spectacular views along the Thames – a scheme that has proven a success over recent years, specifically within the design sector.
There is still a selection of studios available including a few with the sought-after river view!
FULHAM
Commercial to residential sale. Clients of Frost Meadowcroft secured a residential planning consent for the conversion of 517 Fulham Road close to Fulham Broadway. The sale of this 8,000 sq ft commercial building was secured to a residential developer for £473 per sq ft. After several years of marketing as an educational space, consent for the change of use to residential on the 4 upper floors was granted. At Imperial Wharf, Octavia House was sold for approximately £300 psf to a medical owner-occupier. We think that this is the first transaction in the area in over 4 years!
HAMMERSMITH
Thames Tower & Landmark House £300m PBSA scheme
Moda Living and private equity firm Aermont Capital have agreed to buy the former distillers office site in Hammersmith to create a purpose-built student accommodation (PBSA) scheme with a potential gross development value of £300m.
On the site of the former 11-storey Thames Tower and 15-storey Landmark House in central Hammersmith the deal will be subject to gaining planning consent. The 1.35-acre adjoining freehold site is being sold by Malaysian investor Eastern & Oriental, who bought the two buildings for £57m in 2015 from Dubai-based education provider Gems Education. In 2017, E&O proposed a scheme to demolish the two existing buildings to make way for hotel-led development.
Moda owns and operates around 5,000 build-to-rent (BTR) and single-family private rented homes.
EARLS COURT
£10bn Earls Court regeneration approved for 2.5 million sq ft of workspace and 12,000 jobs
Hammersmith & Fulham and Kensington & Chelsea Councils have approved plans for the 40-acre redevelopment which will create c.4,000 homes, leisure and cultural venues located within 20 acres of public realm and green space, alongside a major cluster of commercial, leisure and cultural uses. The decision covers just over half the overall site, with the remaining land sitting in neighbouring Kensington & Chelsea. The scheme, brought forward by Earls Court Partnership (ECDC), includes detailed consent for three towers providing 456 homes and 696 student bedrooms, plus retail, community space and leisure uses. ECDC is a joint venture between Delancey, Dutch pension fund manager APG and Places for London, Transport for London’s (TfL) property arm.
The wider outline plans provide for offices, R&D (Research & Development) floorspace, a hotel including approximately 1.67m sq ft of offices and R&D space, along with substantial retail space and other commercial and community uses. After years of unsuccessful proposals on the former exhibition centre land, the developers now have a clear path to bring forward one of the capital’s most significant regeneration schemes.
CHISWICK
2025 saw a static year in the Chiswick office market with around 130,000 sq ft of deals – the same as 2024. Chiswick Park saw activity from existing occupiers, primarily with moves within the Park from Pokémon (Building 10) and Chugai Pharma (Building 4), both Frost Meadowcroft clients.
Foxtons also relocated its headquarters within Chiswick Park at the end of 2025. After 24 years in Building 1, the company moved into Building 12, taking 26,000 sq ft at a rent in the mid £50s. The new headquarters underwent an extensive high specification fit-out during Q4 2025 .
PADDINGTON
Iconic Battleship Building up for sale.
Commissioned by British Rail in the late 1960s, the Battleship Building was designed by architects Bicknell & Hamilton as a Paddington maintenance depot for British Rail vehicles, together with the attached Rotunda Building, latterly occupied by Nissan for their European design headquarters. Nissan acquired the freehold of the Rotunda Building just a few years ago, having been a long-standing tenant. This urban design studio became the hub for developing iconic models such as the Qashqai and Juke.
Decline & Recognition – A Brief History the Battleship Building
1990s: fell into disrepair and hosted illegal raves.
1994: granted Grade II Listed status (later upgraded to Grade II*) to protect its unique concrete structure.
2000 (to Present): refurbished as an office building in 2000 by Allford Hall Monaghan Morris Architects. Since its refurbishment it has served as the headquarters for major brands including Monsoon Accessorize and the Virgin Group.
2002: earned the Royal Fine Arts Commission Trust Award for Building of the Year.
WHITE CITY
Platform, Westfield London, is set to complete in May 2026, delivering 79,500 sq ft of newly built Grade A office space within the Westfield Estate. The scheme will feature a striking triple-height atrium, extensive cycle and wellness facilities, and strong ESG credentials, including targeted EPC A and BREEAM Outstanding ratings. With a private third-floor terrace, generous breakout areas, and immediate access to Westfield’s retail, leisure, and F&B offering, Platform is positioned to become one of White City’s most prominent headquarters opportunities.
BUSINESS RATES UPDATE
Lots of mixed messages and many people will not be happy with the changes, but ultimately no reform.
THE GOOD NEWS – multipliers have come down and a widespread transitional scheme will benefit some ratepayers (Pubs & some hospitality) and looks like a permanent reduction for retail, hospitality and leisure (RHL) users.
BAD NEWS – RVs over £500k pay the highest multipliers; inconsistency between ratepayers as to what they pay; there are now 5 or even 6 different multipliers. Rateable Values for offices in London are going up, and for some substantially so; in many cases the fall in multiplier is trumped by the increase in RV and more rates will become payable. Some will come down, but most will not!
What is the purpose of the 2026 Rates Revaluation?
The 2026 business rates revaluation will rebase property valuations based on April 2024 values (versus April 2021 previously), with the new ratings running from April 2026 for three years. Overall, the total rateable value pool is increasing significantly from £70.8 billion to £84.4 billion—a 19.2% rise across England and Wales.
The multipliers (the tax rates) have fallen across the board, which will help soften the impact of increased rateable values – notwithstanding this bills for most occupiers will increase.
Our heat map shows how west London offices have fared in this rating review. The big losers are Ealing and Wandsworth with over 27% increase in average rateable values. Better news for occupiers in Hammersmith & Fulham where there has been a lesser 9% increase.
West London office Rateable Values 2026
Data Source: Foreview / VOA
Frost Meadowcroft recommends reviewing 2026 valuations and liabilities now to identify potential savings opportunities, while also ensuring any necessary appeals under the 2023 Rating List are filed before the 31 March 2026 deadline.
Contact us to get our rating specialists view on your business rates.
