In the market London City Rents Break the £90 Barrier: A New Ceiling or a New Floor?

As we navigate through the first half of 2026, the City of London’s office market is doing more than just recovering—it is fundamentally recalibrating. For years, £90 per sq ft was viewed as a psychological ceiling for headline rents in the City Core. Today, that ceiling has become the floor for Grade A space.

Despite broader economic headlines, the “Flight to Quality” has shifted from a trend to a permanent market fixture. Here is why rents are climbing and what it means for the London landscape.

The Record-Breaking Reality

Headline rents in the City Core have officially cleared the £90 per sq ft mark, but the real story lies in the “trophy” assets. In premium towers, we are seeing deals consistently achieving £125–£145 per sq ft.

This isn’t just a spike; it’s a reflection of a supply-demand imbalance that hasn’t been this acute in a decade. With prime availability in some submarkets sitting below 1%, occupiers are no longer just looking for space, they are competing for it.

What is Driving the Ascent?

1. The Scarcity of “True Prime”

The development pipeline is under immense pressure. High construction costs and the interest rate environment of the past few years delayed several major starts. The result? A very low percentage of new-build, prime space is reaching the market.

• The Refurbishment Trap: Many upcoming projects are “light” refurbishments that fail to address fundamental floorplate efficiencies or the deep ESG requirements modern occupiers demand. This creates a “scarcity premium” for the few buildings that get it right.

2. ESG is No Longer Optional

Occupiers aren’t just asking for BREEAM “Excellent” or EPC B ratings it’s now a minimum requirement as they look to ‘future proof’. Driven by both corporate net-zero targets and the 2030 MEES regulations, buildings that don’t meet these standards are becoming unlettable. This has created a “Green Premium” where tenants are willing to pay significantly more for assets that help them meet their sustainability audits.

3. The Pre-Letting Surge

Much of the high-quality stock due for completion in late 2026 and 2027 is already spoken for. When a business plans a move today, they are finding that the “best” options are often gone before the scaffolding even comes down. This lack of “ready-to-go” prime space is forcing rents upward across the remaining Grade A stock.

The Great Divide: The Best vs. The Rest

It is clear to see that older, outdated buildings are being left behind, with higher vacancy rates, falling rents, and a growing risk of obsolescence. The divide between the best and the rest is only getting clearer and the middle ground is disappearing. A building is either a destination that attracts talent, or it is a liability.

The Landlord Opportunity: Repositioning for the New Era

The takeaway for landlords is clear: Invest or risk irrelevance. However, this doesn’t always require a ground-up rebuild. There is a massive opportunity to reposition existing assets through high-quality retrofitting. By focusing on smart building tech, wellness facilities, and superior amenity space, landlords can achieve prime rents at a lower capital entry point than new-builds.

The risk lies in cutting corners. Landlords who fail to spend generously on the “tenant experience” will find themselves stuck between, unable to compete with the “Best” but too expensive to be “Budget.”

The Rubix Perspective: Lifestyle-First Marketing

At Rubix, we see this shift every day. The most successful spaces in 2026 aren’t just defined by their floorplates; they are defined by their connection to the neighborhood. We take a lifestyle-first approach because an office is no longer just a place to sit at a desk. It is a hub for culture, wellness, and social capital. When we market a space, we don’t just talk about sq ft; we highlight the local coffee culture, the commute experience, and how the building’s amenities support a team’s mental and physical wellbeing.