UK London Office Marketbeat Reports

For the data behind the commentary, download the full Q1 2026 UK London Offices Report.

Technology Sector Regaining Momentum

Activity during the first quarter of 2026 saw the return of the Technology sector, with just over 500,000 sq ft leased – a 26% market share. This was the highest quarterly volume of space leased in this sector since Q4 2021 and the largest market share since Q3 2021. Even during the height of the Technology sector boom of the 2010’s, the average market share was around 15%.  

However, the type of Technology businesses differs, with the historic demand driven by the growth of big tech like Meta and Google and this current surge driven by AI businesses. In Q1, half of the sector’s take-up came from AI business, defined as those where AI is the core product or main model, which equated to 12% of Central London leasing volumes. 

Databricks’s pre-let of 134,500 sq ft in Fitzrovia was the headline deal of Q1, with the firm committing to a long-term lease, reinforcing their commitment to maintain a significant presence across the capital. Furthermore, Quantexa pre-let over 50,000 sq ft of space at The Delft in Southbank – a deal that saw the firm paying significant rents ahead of prime levels in order to secure the building which suited their requirements – again on a long-term lease agreement.  

What's Next?

This momentum did not stop in Q1. In fact, so far in Q2, another 250,000 sq ft has already been signed by Anthropic and OpenAI, taking 160,100 sq ft and 90,000 sq ft respectively, with more space under offer from these businesses that will contribute to this subsector taking an increasing share of Central London take-up during the course of the year. 

However, while demand from these global AI businesses contributes significantly to take-up and market share, we must not forget about the smaller businesses. Though they tend to lease smaller units or flex space, they remain active in the market and their growth potential is likely to result in some future take-up, and as a result, increasing dominance of the Technology sector once again.