AI growth set to drive next wave of London office demand

Artificial intelligence is emerging as a major driver of office demand in London, with new research from CBRE pointing to sustained growth from the sector over the next decade.

According to the report, AI-led companies have taken approximately 1.5 million sq ft of Central London office space since 2015, with the sector accounting for 34% of total technology leasing activity in 2025.

The data suggests that AI occupiers are expanding rapidly and prioritising flexibility in their workspace requirements. Location remains a key factor, with demand driven more by accessibility and connectivity than by any single submarket.

Looking ahead, CBRE estimates that total office take-up from AI firms could reach 4 million sq ft by 2033. This would represent an additional 2.5 million sq ft of demand over the next eight years, equivalent to a significant proportion of the current development pipeline.

The report highlights London’s position as a leading global technology hub, supported by its access to talent, capital and a mature innovation ecosystem. The city’s concentration of universities, start-ups and established tech firms continues to underpin growth in digital industries, with AI expected to play an increasingly central role.

This expansion is also expected to influence how office space is designed and used. As AI-driven companies scale, new expectations around workplace environments and functionality are likely to emerge, reflecting changing patterns of work and collaboration.

CBRE suggests that cities with strong AI ecosystems, such as London, are well placed to capture future growth in the technology sector, while markets without similar foundations may struggle to compete.

The findings reinforce the role of emerging technologies in shaping office demand, with AI now positioned as a key occupier group influencing both leasing activity and long-term development strategy.

Report: https://www.cbre.co.uk/insights/london/london-future-ai-driven-office-demand