The boot’s on the other foot now. London office market trends have flipped since Covid. Before the pandemic, landlords held all the cards – demand was strong across every type of office, from the bare basics to top-tier space. Today, tenants have far more power and the market has had to adapt quickly.
Hybrid working has changed what businesses want and not every building is keeping up.
But while demand has changed, it hasn’t disappeared. It’s just more focused, more selective and more strategic.
A Market Transformed by Hybrid Work
One of the biggest shifts in London office market trends is how demand has narrowed.
Before the pandemic, there was appetite for all kinds of space – basic, mid-range and high-spec. Today? It’s largely about quality over quantity.
- Top-spec offices – think natural light, excellent air systems, stylish design and tenant-ready fit-outs – are still in strong demand.
- Basic space is being left behind.
- Mid-grade offices, such as older air-conditioned space, are struggling unless they come with a compelling offer or serious discounts.
Premium Space Leads the Way
Landlords who invest in creating fully fitted, plug-and-play offices are coming out on top.
High-quality space now comes with high expectations:
- Pre-installed IT and infrastructure
- Bike storage, showers and even on-site cafés
- Collaborative breakout areas that double as informal meeting zones
And yes – these extras often come with higher rent. But for many tenants, they’re worth it. The space is ready to go, the overhead is lower and the experience for teams is far better.
These are the types of spaces dominating London office market trends in 2025.
The Mid-Market Is a Hidden Opportunity
While mid-grade space might be out of fashion, it’s also where the best deals can be found – if you know how to play it.
This segment is struggling to let, so landlords are more flexible than ever. That means:
- Lower headline rents
- Longer rent-free periods
- More negotiation room on terms
If your business doesn’t need glossy, Grade A finishes, this could be a smart – and very cost-effective – move.
Landlords Are Doing More of the Work
Another shift in London office market trends is how much landlords are now willing to offer.
Pre-Covid, the standard approach was:
- Long, rigid leases
- Empty shell spaces
- Tenants footing the bill for fit-outs
Today, it’s flipped. With fewer active tenants, landlords are now offering:
- Shorter, flexible leases
- Fully fitted spaces
- More collaborative, consultative deals
The best ones will even ask what you need – and then deliver it. That’s a win-win for both sides.
Serviced Offices Are Levelling Up
With more competition in the flexible office sector, serviced office providers are raising their game.
We’re seeing:
- Better design and facilities
- More inclusive packages
- Enhanced communal areas and added perks
This makes serviced space a solid option – especially for businesses wanting agility without compromising on quality.
Final Word on London Office Market Trends
Demand for London office space is certainly changing, but not disappearing.
The shift is all about quality, flexibility and value. Landlords are adapting, tenants have more choice and power and the smartest moves are being made by those who understand how the new rules work.
If you’re considering a move or rethinking your workspace, this is the time to do it – and to do it with insight.
This is just one piece of the puzzle. We’re constantly answering the most important office search questions. See what else we’ve covered and what’s coming next.
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Michael Fraser
Michael started in the London property market in 1970. He has an extensive knowledge of the locations, owners & rental values within the office market hub.