What’s behind the surge of leasing London office spaces for collaboration?

London’s office market is undergoing a strong resurgence in 2025, primarily as companies increasingly lease London office spaces for collaboration. The trend is fuelled by the working population’s desire for quality and connectivity. Therefore, this article explores what drives the momentum and why London remains the centre of all change.

Central London’s office space experienced notable growth in activity in early 2025. According to the latest commercial property figures, office take-up in London reached 2.13 million in Q1 2025, a 1% increase over the 10-year average for the same period. Across UK regional markets, take-up totalled 1.3 million square feet in Q1 2025, 4% above the five-year quarterly average.

Office space availability in Central London remains at 23.0 million square feet, outpacing the 10-year average of 18.3 million square feet.

Office space availability in Central London (2019 – 2025)

Supply increased by 7% from the previous quarter, except for Midtown, which saw a slight decline of 4% to 2.4 million square feet. Moreover, the vacancy rate in Central London ended Q1 at 8.2%, with more than 100,000 square feet of ready-to-occupy space available (23 units). This is a slight decrease from the early Q1 rate of 10.6%.

If you are interested, explore further insights into the London office market report (1) in 2025.

Several sectors drive this leasing activity across Central London, with Banking taking the lead with 24% of take-up. Other sectors occupying more space in the region include:

• Tech and Media – 22%
• Professional services – 12%
• Public services – 9%
• Insurance and financial services – 6%
• Business and consumer services – 6%
• Serviced office provider – 5%

The top-performing areas in the London office lease (2) include the City Core, West End, Midtown, Mayfair, Fitzrovia, and Soho. These areas experience high demand for space, with the City of London and West End recording high rents.

Leasing shares in Central London 2025, by sectors

Several labour-market metrics highlight a clear return to shared office space. According to statistics, about 33% of people worked exclusively from home in May 2020. The number has decreased to about 14% in April 2025. Hybrid working increased from 7% in May 2020 to 26% in April 2025 (Source: Statista).

Hybrid working adoption (% of UK workers) from 2020 – 2025

Data reveals that teamwork and collaboration can increase company sales by 27% and customer satisfaction by 41%. This growth in collaborative workplaces is fuelled by the increasing number of coworking spaces, which was estimated to grow at a yearly rate of 21.3% by 2024.

There is a marked rise in in-force mandates, with more companies increasing their return-to-office requirements. For instance, companies like Amazon, McKinsey, and Asda mandated their staff to work from the office at least 3-5 days a week. However, companies understand that collaboration often happens best in shared in-person hubs designed with flexibility and wellness.

You might want to know more about hybrid office (3) and gain some tips to design a more flexible workspace (4).

Companies are becoming more selective than ever as they seek to maximise the advantages of leasing office space in London. Today’s office slowly shifts from a physical place to handle tasks to collaborative environments that foster overall well-being and productivity. This trend has seen businesses setting new demands when looking for office spaces to lease. Notable highlights include:

Surge in demand for Grade A and energy-efficient buildings

Occupiers are increasingly seeking high-quality, eco-conscious properties with robust environmental credentials. These include energy-efficient systems and sustainability certifications. Only about 30% of UK office owners have a net-zero carbon strategy, highlighting an area with competitive opportunity.

Sustainability metrics driving location and fit-out decisions

Today’s tenants demand comprehensive environmental, social, and governance (ESG) transparency. As post-pandemic awareness grows, businesses expect rental spaces to be healthier with sustainable energy, water use, and waste management. This reflects a broader sustainability strategy pursued by 98% of corporate occupiers.

Data on WELL-certified and BREEAM-rated spaces

WELL and BREEAM certifications are key in leasing decisions. Buildings with BREEAM excellent or outstanding ratings can command premium rents of up to 15% more than those with poor ratings. WELL certification complements these benefits by improving tenant well-being through controlled air quality, natural light, and wellness zones.

Trends in amenity-rich buildings

Almost 80% of high-quality buildings are in vibrant, amenity-rich city-centre locations, offering employee-friendly features. Landlords are also differentiating their offerings through wellness features, smart collaboration tools, lounge-style zones, and support for active travel. These appeal to businesses and individuals with environmental priorities.

As vacancy rates in Central London drop and rents surge, businesses seek spaces supporting innovation, productivity, and ESG-driven goals. Here are the top reasons such companies lease London office spaces for collaboration.

• Access to top clients: London remains one of the world’s foremost talent magnets. This access to a deep-standing talent pool enables firms to forge high-impact partnerships and engage directly with key clients.
• Unmatched transportation: London’s vast transport system includes over 400 rail stations and 12 underground lines. The Elizabeth Line alone has completed over 500 million passengers by January 2025 while slashing trip times by up to 50%. The system also connects East and West London to major office districts like Fitzrovia and Soho.
• Flexible leasing models: Most businesses worry about the cost of London office space per square foot. Fortunately, London’s office market offers flexible leasing options, allowing companies to scale, optimise costs, and control fit-out.
• Green-certified offices: Sustainability-focused businesses are opting for WELL- and BREEAM-certified buildings. Offices with sustainability certification (5) command a 6% rental premium over those that do not. High WELL and BREEAM ratings also deliver 25-50% energy savings and 40% lower water usage.
• Designed for collaboration: Modern London offices feature collaboration zones, hot-desking, and wellness amenities. Tech meeting systems and on-site facilities support this wave of design innovation.

The advantages of leasing office space in London are now more measurable and compelling than ever. Getting the best office in London means access to top-tier talent and clients and a curated workspace for optimal growth. However, all these are possible if you understand how much to lease office space and the best location to choose.

The Langham Estate offers tailored solutions, including premium offices and serviced offices. Contact us today for site tours and guides on choosing the best office space in prime locations like West End, City Core, Midtown, and Fitzrovia.

In this article:

(1) What’s ahead for Central London’s office market in 2025?

(2) Best areas to work in London 2025: Find your ideal office space

(3) How to design a hybrid office that works for everyone

(4) What does a flexible office look like?

(5) Essential green building certifications for UK office spaces