A more selective market – Our View
Nationally, GDP rose by 0.4 per cent in Q2 down from 0.6 per cent growth in the first quarter, according to the Office for National Statistics. The ONS said: “Services were once again the main driver of growth, while production was broadly unchanged and construction also grew.” That national trend showed through clearly at a local level too, with professional and business services occupiers driving Kensington & Chelsea’s record quarter – a welcome upturn as the West London office market remains challenging overall, and the headline fall in take-up masks a more interesting picture.
Whilst there are fewer deals being done, the average transaction size has increased. Demand is also becoming increasingly concentrated in particular locations and buildings, with Kensington & Chelsea bucking the trend accounting for 64% of all Q2 take-up.
The message for landlords is clear: occupiers remain willing to commit, but they are becoming increasingly selective about location, quality, specification and value. Meanwhile, the substantial amount of secondary space available across parts of West London continues to present a significant challenge. West London take-up was just 85,000 sq. ft – 66% below Q2 2025. This underlines the increasingly localised nature of occupier demand, with well-located, good-quality buildings continuing to outperform.
Take-up falls, but average deal size increases
There were less transactions in Q2 this year, compared with Q2 2025 – around a 25% fall in take-up and a 28% reduction in deal numbers. However, the average deal increased from 4,597 sq. ft to 4,831 sq. ft. The market is therefore not simply seeing occupiers taking smaller offices – there are fewer occupiers making decisions, but those that do commit are still taking meaningful amounts of space.
Office availability remains high
Total available office space across the West London markets monitored stands at approximately 4.5m sq. ft. Although this is fractionally lower than a year ago, it remains over 20% higher than Q2 2023, demonstrating that the structural surplus of office space has not disappeared.
Hammersmith & Fulham continues to account for the largest share, with over 2.4m sq ft available – around 20% of office stock. Availability actually increased by almost 10% during the quarter. Chiswick provides a more positive picture, with availability falling to 560,000 sq ft, around 20% below its 2024 peak however no significant deals were recorded in Q2. Paddington remains the tightest market, with only 229,500 sq ft available, equivalent to 6.1% of stock.
The bigger picture
Whilst take-up deal numbers have fallen the average deal size is up by approximately 16%.
For us, this is the key trend. The market is not simply contracting – it is becoming more selective and increasingly polarised. Good buildings in the right locations can still attract occupiers. However, secondary buildings, particularly those requiring significant investment to meet modern occupier expectations, continue to face a much tougher leasing environment.
(West London – *Kensington & Chelsea, Hammersmith & Fulham, Paddington, Wandsworth & Chiswick)
Deals in West London
Hammersmith
BERGHEM MEWS, OLYMPIA
A strong example of occupier demand for distinctive workspace is the recent letting of 6,262 sq ft at Berghem Mews to Wheely. The luxury mobility and chauffeur company has committed to a 10-year term at the Hammersmith/Kensington location, reinforcing the appeal of characterful offices that combine flexibility with a strong working environment.
Fulham
FULHAM CENTRE, SW6
The Fulham Centre’s 3rd floor is now fully let. Fly Victor has taken the final 3,222 sq ft of CAT A+ space, joining Stonehaven Cozmix Group (SC Group) to complete the floor. Both occupiers benefit from the building’s standout amenities – rooftop garden, The Clarion Café, and flexible space at Huddle Fulham. Off the back of that demand, we’re now delivering a fully fitted 3,222 sq ft of fitted office space on the 4th floor, ready Q3 2026 – alongside a 2,650 sq ft CAT A suite (4th) and 6,380 sq ft on the 5th.
The Freehold Office in Melbray Mews Fulham is now sold. Following interest from owner occupiers, a developer completed on the purchase of this 6,000 sq ft warehouse style office.
Richmond
A recent letting at 26–30 Paradise Road, Richmond provides evidence of activity in the Richmond office market. A new tenant has taken 2,430 sq ft on the second floor, with the lease signed on 19 May 2026 and commencing on 8 July 2026. The property has recently been refurbished and provides contemporary office accommodation close to Richmond station. The letting was represented by Bray Fox Smith.
Other notable activity includes recent lettings at 63 Kew Road, Richmond. Grohe has taken 2,704 sq ft on the third floor at a headline rent of £65.00 psf FRI, with the five-year lease completing on 14 April 2026. In a further letting, AMCS Group took 5,276 sq ft on the same floor at £60.00 psf FRI on a five-year term, completing on 1 April 2026.
Paddington
A significant recent letting at 5 Merchant Square, Paddington saw 45,770 sq ft of office space taken on a new direct lease, with the transaction completing in July 2026.
Kensington & Chelsea
CHELSEA WHARF
Frost Meadowcroft have recently completed the letting of 1,267 sq ft at Chelsea Wharf to F. Schumacher & Co., the American design house specialising in luxury fabrics and interior furnishings. Their move to Chelsea Wharf is a natural fit for the brand, placing them within one of London’s most established design-led destinations and highlighting the continued appeal of the area to creative businesses.
106 KENSINGTON HIGH STREET
New letting at 106 Kensington High Street, where Anesi Advisors Limited has signed for 2,548 sq ft of fully fitted space on the 2nd floor, on a 5-year lease at £77.50 per sq ft. The deal reflects continued demand for well-located, fitted office space in Kensington, offering occupiers the ability to move straight in without capital outlay.
In the Pipeline – new developments coming up
Putney – 175 Upper Richmond Road – 45,000 sq ft
Nicolas James Group’s agents launched 175 Putney, a new 39,000 sq ft eco-conscious development in the heart of Putney. The scheme retains and remodels the existing building, significantly reducing embodied energy and carbon emissions providing the local office market with grade A space.
Parsons Green – Brightwell – 45,000 sq ft
Brightwell is another new office development offering 45,000 sq ft of high-specification office space across six floors, with expansive open-plan floorplates and landscaped terraces. The scheme is due to complete at the end of 2026 and will provides a vibrant setting with views across Chelsea and towards London’s West End. The developer is W.RE working alongside joint venture partner Taurus UK advised by JLL & BFS.
Platform, Westfield White City– 80,000 sq ft
Frost Meadowcroft are joint with Savills on Platform, Westfield London, 80,000 sq ft of brand new Grade A office space, reborn from the original House of Fraser department store at the heart of Westfield London. White City was named after the white pavilions built here for the 1908 Franco-British Exhibition – a site that later hosted London’s first Olympic Games, then became home to the BBC’s Television Centre. White City has always been a place that reinvents itself, and Platform is the latest chapter.
Reimagined by Squire and Partners, the building features a centrepiece illuminated atrium with internal balconies, ceiling heights in excess of 4.5m, roof terrace and best-in-class end-of-journey facilities. All benefiting from exceptional transport links and the amenity of Westfield London on the doorstep.
MEES update
The Government’s interim response on reforming Minimum Energy Efficiency Standards (MEES) for non-domestic privately rented property in England and Wales sets out a targeted approach. From 2031, privately rented non-domestic buildings over 1,000 sq. m will need to achieve EPC B where cost-effective, while smaller properties remain at the current EPC E minimum and the proposed EPC C milestone for 2027 has been scrapped. Existing flexibilities like the seven-year payback test and exemptions are retained.
The shift offers relief for the landlords of smaller premises. However significant uncertainty remains around how the 1,000 sq. m “building” threshold will be measured and applied, and how improvement costs will be shared between the landlord and tenant. With further legislation still required and a long history of delays since the first consultation in 2019, there is scepticism about how quickly the details will emerge.’
East West Link
Imperial College is creating an East-West Link, a publicly accessible pedestrian and cycle route connecting its White City campus with North Kensington via an underpass beneath the West London railway line. The railway currently separates the two communities, with the nearest crossings around ten minutes north at Latimer Road or fifteen minutes south at Shepherd’s Bush, so the link would remove a considerable detour and improve access to local facilities and amenities. It will feature rounded entrances, good lighting, and clear sightlines from both ends. Both Hammersmith & Fulham and Kensington & Chelsea resolved to grant planning permission in 2025; Imperial is still finalising the property and legal agreements needed, with construction currently expected to start in mid-2026.
