Introducing our Q2 2026 Market Update: Workplace sector focus

This edition of our Market Update focuses on the London workplace sector and the pressures shaping it in 2026.

London’s prime office market remains resilient, but the factors influencing occupier decision-making are changing.

We look at how a persistent shortage of new Grade A office space, rising occupier costs and wider economic uncertainty are influencing real estate strategies across the capital. Increasingly, large occupiers are choosing to remain in their existing space, investing in refurbishment and fit-out projects rather than relocating into a constrained and competitive leasing market.

This is creating a significant pipeline of workplace upgrades, with organisations focusing on flexibility, functionality and sustainability in the spaces they already occupy.

At the same time, wider market conditions remain challenging. Ongoing geopolitical tensions are contributing to energy and material price volatility, creating renewed inflationary pressure across parts of the supply chain.

As a result, procurement timing, early contractor engagement and securing cost certainty are becoming increasingly critical to successful project delivery.

We also consider what these factors mean for London’s workplace sector in 2026 and beyond, and how occupiers and developers are responding to a market shaped not only by constrained supply, but also by increasing cost sensitivity and delivery risk.

Read the full report