London’s prime office market remains very strong, and at Unica Capital we continue to invest in the UK market, targeting the capital’s best commercial assets, and delivering the office spaces that tenants want.
Research from Savills Q2 2025 Central London Office Market Watch showed a 14% rise in leasing activity against the 5-year average in the West End, with take-up at 1.7 million sq ft. Though down on the longer-term average, it shows the resilience of this sector. However, what remains vital for a portfolio’s success is to identify the right properties where demand still outstrips supply, especially in the type of property Unica has, and is adding, to its portfolio.
With acquisitions in Mayfair’s Cork Street, and Soho buildings in Wardour Street and Poland Street, Unica Capital still has the prime West End as a key focus, with CAT A+ spaces offering “plug-and-play” fit-outs across smaller floor plates in increasing demand.
At 55-56 Poland Street our tenants are in good company, with the likes of Meta, Sony, M+C Saatchi and Telefonica close by. Added to this is the rich mix of Soho bars, restaurants and retail on the doorstep – making it an enticing space that our tenants’ workforces want to be part of, with the ease of multiple transport connections that connect the West End to the whole of Greater London and beyond a clear positive.
From basement to fifth floor (with retail positioned on the ground floor), Poland Street’s floor plates range from 90 sqm to 240 sqm (GIA) and continue to prove popular. What also remain key drivers are well-fitted, smart spaces that address sustainability, and are in locations that have an abundance of amenities.
CBRE’s ‘Intelligent Investment’ analysis published in May this year also points to a surge in tenant demand, reporting a 70% increase on the five-year average, with 416 tenants seeking a combined 12.8m sq ft. This was quoted as the highest level of activity since records began in 2016. They did note, however, an imbalance between active demand and take-up, due to several factors, including the length of time it can take to complete deals, as well as flexible office operators not being accounted for correctly. What CBRE also found was that increased fit-out costs can be off-putting for some tenants, with prices running at approximately £500 per sq ft compared to £300-350 per sq ft in 2021. At Unica Capital our experienced team know how to deliver ready-to-go CAT A+ commercial space that negates this need.
JLL also reported increased rents across Central London, driven by limited supplies, pushing prices in the City to £90 per sq ft and in the West End to £165 per sq ft. Addressing this need seems more urgent than ever, and at Unica Capital we continue to find properties that will bridge the gap between supply and demand.
All signs suggest an increase in potential profits for commercial developers who have the right eye for selecting prime sites, and the expertise in transforming and delivering offices that provide sustainable, enjoyable space for people to come together and work collaboratively. With this in mind we will continue to invest in London, whose commercial market remains robust, with exciting opportunities for developers looking to increase their presence, and serve their tenants exceptionally.