London AI office space leases rise tenfold in year

"“It's almost a graduation moment in terms of offices for the sector... This isn't looking like a bubble.” He added: “We're hearing from people in the market that there is a lot of latent demand from AI firms in the market.”"

"“Almost half of deals were done for offices in the areas around King's Cross and Euston stations with good links to Cambridge and London's education providers.” The Knowledge Quarter in King's Cross is home to Alphabet's AI division DeepMind, alongside Google, Meta and Microsoft."

"“Although office vacancy rates in the capital are still higher than pre-Covid levels, the rate for 'really good quality buildings with appropriately large floor plates is quite low', Scanlon says.” In April 2025, less than 50,000 sq ft of office space was being leased by AI companies. By March 2026, that had risen to 250,000 sq ft."

"“The other really important point in flexible working arena is the idea of an office as a physical representation of your brand never went away, so a lot of these guys want a presence in King's Cross to show they're here to stay. ”There is still a desire to exchange knowledge and be around each other.”"

Office space leased by artificial intelligence firms in London has risen more than tenfold over the past year. Almost half of the deals involve offices near King’s Cross and Euston, benefiting from transport links to Cambridge and London’s education providers. A market analyst describes the growth as a graduation moment and says it does not resemble a bubble. Vacancy rates remain above pre-Covid levels, but vacancy for high-quality buildings with large floor plates is low. Leasing by AI companies grew from under 50,000 sq ft in April 2025 to 250,000 sq ft by March 2026. The Knowledge Quarter around King’s Cross hosts major AI and tech firms, supporting clustering, skilled labour access, venture capital, and brand presence through physical offices.

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