AI Firms Lease Ten Times More London Office Space Than a Year Ago
Office space leased by AI companies in London surged tenfold in April 2026 compared to the 2025 average — a sign the AI industry is rapidly maturing from startup to scale-up.
The amount of London office space leased by AI companies jumped more than tenfold in April 2026, according to real estate analysts CoStar. Over 450,000 square feet was taken up in a single month — compared to an average of 40,000 sq ft per month across all of 2025.
Most deals were clustered around King's Cross and Euston, close to Cambridge links and London's universities. CoStar's senior director of market analytics Patrick Scanlon called it "a graduation moment" for the sector, adding: "This isn't looking like a bubble."
What this means for small businesses: The AI industry is no longer just a tech story — it's becoming a dominant force in the UK economy. More AI firms means more AI products, more competition, and lower prices for the tools you use every day.
It also means talent is concentrating in London's AI ecosystem. If you're looking to hire AI-literate staff, or work with AI consultants, the supply is growing fast.
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