AI Companies Are Dramatically Boosting Demand For Flexible Offices In London (CBRE)

AI companies are becoming one of the strongest drivers of flexible office demand in London, according to CBRE’s London’s Future: AI-Driven Office Demand report. CBRE found that AI-related companies accounted for 34% of London tech office take-up in 2025, compared with just 4% a decade earlier.

According to CBRE’s analysis of 100 leading London-based AI startups, 75 currently operate from flexible workspaces, while only nine occupy traditional office space. The remaining companies either operate remotely or outside Central London.

The report identifies flexibility, immediate occupation, uncertain headcount growth, and access to amenity-rich environments among the main reasons AI companies are gravitating toward flexible office operators.

The consultancy also notes that many AI firms later transition into traditional office space as they scale. Examples include OpenAI, which initially operated its London office from Fora before signing approximately 9,300 sqm of traditional office space. Other AI companies highlighted include Synthesia, which secured around 1,810 sqm in traditional office, and Quantexa, which leased approximately 5,000 sqm for a new global headquarters at a managed office by GPE.

According to London Flex Market Update Q1 2026, CBRE expects flexible office transaction activity in London to remain exceptionally strong throughout 2026, driven by constrained office supply, rising demand from AI companies, and the continued maturation of the flex office sector.

Constrained development pipeline across the City and West End is pushing occupiers to secure flexible space earlier, CBRE says. Particularly fully fitted offices close to existing headquarters. Companies are increasingly using flex space both as short-term overflow solutions and for longer-term flexible commitments while evaluating permanent office options.

“2026 has seen robust demand for flex space and occupier appetite remains strong,” said Michael Glynn, Head of Flex, UK, CBRE. “Most notably, corporate occupier demand is at record levels – driven by M&A activity, speed-to-market requirements, swing space needs, and, in some cases, simple capacity constraints.”

Flexible offices currently represent around 12% of the total Central London office market, according to CBRE’s European Flex Office Market Update 2025 report.

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