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While the debate rages about how artificial intelligence might affect office takeup, one London landlord is making hay leasing space to AI-related companies.
Great Portland Estates said 7% of its 2.9M SF London office portfolio is occupied by AI-related companies. That figure rises to 18.5% when it comes to the firm’s 582K SF fully managed flexible office portfolio.
Its most recent AI deal is a 7,500 SF lease at its 59K SF Kent House office building in Fitzrovia to Vanta, a compliance automation and trust management platform.
Rising investment in AI is likely to make the sector a major driver of London office leasing for years to come. In 2024, London-based AI companies raised £2.7B, GPE said, citing Tech Nation data. That brings total AI investment to £9.9B over the past five years, or 71% of all UK AI funding. The UK capital is now home to over 1,600 startups.
“While the rise of AI may reduce global demand for office space, we believe premium workspaces in globally significant cities will remain magnets for top-tier AI talent and businesses and London is exceptionally well placed to benefit,” GPE CEO Toby Courtauld said in a statement.
The downside of AI for office demand is represented by companies like Salesforce. Marc Benioff, the tech giant’s CEO, said last week the company had eliminated 4,000 positions in customer services by utilising AI.
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