Demand for large office space helped drive Central London’s occupier market to its sixth consecutive year of expansion in 2025, research from Cushman & Wakefield reveals.
The firm’s latest London Moves report found that office transactions above 100,000 sq ft rose from eight in 2024 to 12 last year, with 11 of those deals involving occupiers increasing their footprint.
Overall net office expansion across Central London reached 3.82 million sq ft, the highest level recorded since 2019, as businesses continued to commit to larger, higher-quality space despite wider economic and geopolitical uncertainty.
The report analysed 504 leasing deals above 5,000 sq ft completed during 2025, totalling 9.6 million sq ft of take-up. While total deal numbers were slightly down on 2024, activity at the top end of the market strengthened significantly.
LONG-TERM COMMITMENTS
Professional Services remained the most active sector, recording 85 moves totalling 1.36 million sq ft, while Banking & Finance generated 84 relocations amounting to 2.55 million sq ft.
The largest transaction of the year was Squarepoint’s 404,000 sq ft pre-let at 65 Gresham Street in the City.
Alistair Brown (main picture, inset), Head of Offices UK at Cushman & Wakefield, says: “Occupiers with growth agendas are making decisive, long-term commitments to high-quality buildings in core locations. The scale of expansion we are seeing signals accelerating confidence in the office as a catalyst for productivity, culture and business growth.”
The City accounted for 59% of all leasing activity, while East London emerged as one of the strongest-performing markets, with take-up exceeding 1.1 million sq ft as Canary Wharf benefited from improved connectivity via the Elizabeth Line.
AI OFFICE MARKET
The report also highlighted the growing influence of artificial intelligence firms on the London office market.
AI businesses accounted for 15% of technology sector take-up during 2025, with activity accelerating sharply in early 2026 following major office deals by firms including Anthropic, OpenAI and Databricks.
Cushman & Wakefield estimates AI-focused businesses could generate between 1 million and 2.1 million sq ft of additional office demand annually in Central London over the next three years.
James Campbell, Head of Central London Offices Leasing at Cushman & Wakefield, says: “AI businesses are driving strong near-term demand and are proactively seeking the best buildings available.”
