Cushman & Wakefield (C&W) has claimed "big is back" for London’s office occupiers, with demand for larger workspaces rising and total net office expansion at a six-year high of 3.84m sq ft in 2025.

Central London saw total deals fall but expansionary moves rise in 2026

The firm’s ‘London Moves’ report, which analyses every central London office leasing deal over 5,000 sq ft, reveals that transactions over 100,000 sq ft rose by 50% from eight to 12 year on year, with 11 of those involving expansions.

In total, there were 504 deals totalling 9.6m sq ft in 2025, with a marked increase in firms looking to expand.

The total net expansion of 3.82m sq ft across the London market is the highest level recorded since 2019, and marks the sixth consecutive year of expansion across central London.

While activity strengthened in the upper end of the market, overall deal volumes eased slightly, falling from 531 deals to 504, as transactions below 50,000 sq ft declined.

Squarepoint’s 404,000 sq ft pre-let at 65 Gresham Street was the largest of the year

Alistair Brown, head of offices UK at C&W, said: “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 the West End remained constrained by limited availability.

East London emerged as a standout performer, driven by expansions in a resurgent Canary Wharf, with deal volumes tripling year on year and total take-up exceeding 1.1m sq ft.

C&W also identified a rise in location loyalty, with the average distance moved by relocating businesses falling to a record low of 0.65 miles. More than 60% of businesses moved to spaces within half a mile of their previous office, compared with 46% across the five years before the pandemic.

Sector-wise, professional services remained the most active sector in 2025, with 85 moves totalling 1.36m sq ft, including FTI’s 103,000 sq ft pre-let at 1 Exchange Square in the City.

Banking and finance occupiers recorded 84 lettings, but with a greater total of space, reaching 2.55m sq ft of take-up. This was led by the largest deal of the year: Squarepoint’s 404,000 sq ft pre-let at 65 Gresham Street.

AI businesses accounted for 15% of take-up in the technology sector in 2025, but this activity has already accelerated sharply in 2026. C&W predicted that AI-driven occupier demand was still in its early stages and had the potential to accelerate rapidly over the next three years.

Based on its estimates, the sector is forecast to generate around 3m sq ft of additional central London demand over the next three years in the base case, and up to 6.4m sq ft in the upside scenario.

Heena Gadhavi, head of London offices research and insight at C&W, said: “The acceleration of AI demand in central London adds a powerful new layer to an already supply-constrained market. Even under our base case assumptions, AI occupiers alone have the potential to materially tighten availability in the most sought-after parts of central London.

“Against a backdrop of limited new development, this demand will play a growing role in reshaping the composition of active occupiers and sectors across the market.”