London office space demand surges as BlackRock, Microsoft hunt for HQs
Demand for London office space is rising as major firms hunt for new headquarters. Financial giants BlackRock and Jane Street, along with tech company Microsoft, are actively searching for large premises. The market has seen its strongest growth in years, with more space being occupied than left vacant.
Office demand in London turned positive in 2022 for the first time since 2019. The last quarter alone recorded 1.9 million sq ft of net absorption—the highest in three years. This shift follows a period of reduced supply, making it harder for big firms to find suitable locations.
BlackRock is seeking a new London base with at least 600,000 sq ft. The firm has reviewed multiple sites, including HSBC's Canary Wharf skyscraper and Deutsche Bank's former offices at 75 London Wall. It has also considered the Bishops Square development in Spitalfields. Trading firm Jane Street is now focusing on Bishops Square after earlier looking at 75 London Wall. The area's central location and available space appear to meet its requirements. Meanwhile, Microsoft is expanding its London presence. The company is eyeing Film House in Soho for additional space. It is also searching for a new headquarters along the Elizabeth Line, targeting buildings between 200,000 and 250,000 sq ft.
The surge in demand highlights London's recovering office market. Large firms are competing for limited premium space, pushing net absorption to its highest level since before the pandemic. With few sites meeting their size needs, companies may need to act quickly to secure suitable locations.
