“It is not just the volume of space being leased but the speed at which this occupier group is maturing,” said Philip Hobley (pictured right), head of London offices at Knight Frank. “These firms are moving from flexible and early-stage space into substantial, permanent headquarters because they are securing funding, growing revenues, building teams and making long-term commitments to London.”
Hobley added that AI companies had become one of the new sources of demand for prime office space in the capital.
Among the most notable recent transactions, Anthropic — the AI company behind the Claude chatbot — agreed to take 158,000 sq ft at Royal London Asset Management and British Land’s One Triton Square development near Euston. OpenAI, the owner of ChatGPT, has leased 89,500 sq ft across two blocks in King’s Cross.
“GPE and other major office developers have documented a clear influx of AI companies moving to London or establishing a base here,” said Toby Courtauld, chief executive of GPE. “Real estate is the most tangible measure of economic confidence, and London’s AI sector is sending a clear signal. AI is not London’s threat, it’s a growth lever.”
Knight Frank estimates that a further 610,000 sq ft of active requirements from high-tech companies is currently in the market. Firms with identified space needs include Harvey AI, legal technology company; Celonis, the German tech unicorn; and Nebius AI, which recently received a $2 billion investment from Nvidia.