Southbank East has shifted back into positive absorption after two consecutive years of net demand losses, according to data from CoStar, a global leading provider of online real estate marketplaces, information and analytics in the property markets.
In the fourth quarter of 2025, annual net absorption exceeded 200,000 sq ft, marking the strongest quarterly performance in more than a decade. Southbank East had previously experienced two years of declining demand, as a surge in new space deliveries towards the end of 2023 coincided with a slowdown in leasing volumes.
The submarket’s vacancy rate reached a 12-year high of 11.5% at the beginning of 2025, rising from less than 2% in 2019.
“The increase has been driven by a wave of development completions, resulting in almost 1 million sq ft of new space delivered between 2020 and 2025, which is more than five times the amount delivered in the preceding five-year period,” said Patrick Scanlon, senior director of market analytics at CoStar Europe. “Occupiers seeking larger floorplates are likely to find fewer options than expected in Southbank East, as the vacancy rate for floorplates larger than 15,000 sq ft is just 8.3%, compared with a London-wide vacancy rate of over 12%.”
Despite more than 1.3 million sq ft of office space being delivered since 2020, with over 20% still available, current developments are showing improved performance, with around 25% of floorspace under construction pre-let, compared with just under 30% across Central London.
The full analysis can be found here.
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