The question of who actually signs leases in London’s office market reveals more about the city’s economic trajectory than any headline GDP figure. According to Savills’ Q4 2024 research, the Insurance & Financial Services sector accounted for 34% of take-up across Central London last year—representing 3.2 million square feet of new leases, up 54% on the ten-year average. But beneath this familiar headline lies a market undergoing structural transformation, with new sectors emerging and traditional powerhouses adapting to changed circumstances.
For Nick Millican, CEO of Greycoat Real Estate, understanding these tenant dynamics is fundamental to investment strategy. “It’s become a two-tier market,” Millican observed. “There’s good buildings in good locations with modern environmental performance that are doing very well—rents are actually going up. And then there’s some stuff that isn’t really fit for purpose and is in the wrong place that probably needs to become something else.”
Financial Services: Still Dominant, But Evolving
The numbers tell a story of remarkable resilience. Central London recorded 210 financial sector transactions in 2024—the highest number ever recorded—with activity driven particularly by hedge funds, asset management firms, and insurance companies. The Alternative Investment sub-sector, encompassing private equity and hedge funds, has been especially active, with firms expanding footprints across the City Core and Mayfair.
What’s changed is the nature of what these firms want. According to Savills data, 27% of financial sector occupiers have been at their primary London office for 15 years or more, with another 26% in place for 10-15 years. These firms are now approaching lease events with upgraded expectations—demanding Grade A space, strong ESG credentials, and the kind of amenity provision that helps attract and retain talent in a competitive market.
Millican has seen this shift firsthand. “Environmental performance classifications have gone from almost irrelevant for most tenants to being very important,” he noted. “The other change is that people are seeing working from home as competition. They’re actively thinking about how to persuade people to make the commute—and a lot of that is being in a location that has attractions for what people do after work, before work, at lunchtime.”
Tech & Media: The AI-Fuelled Resurgence
Perhaps the most striking development in London’s tenant mix is the resurgence of the Tech & Media sector. After a difficult 2023, when transaction numbers fell to their lowest level since 2008 amid widespread tech layoffs and cost-cutting, the sector roared back in 2024 with the highest take-up in two years. The sector accounted for 16% of Central London leasing, with 128 transactions completing—substantially above 2023 levels.
By Q1 2025, Tech & Media had surged to become the leading driver of City take-up at 23%, according to Savills’ April 2025 research—outpacing even Insurance & Financial Services for the first time. This has been driven by firms like Trainline, PayPal, and SS&C Technologies, reflecting both a return-to-office momentum and genuine growth in the sector.
The AI boom is increasingly visible in leasing data. According to Bisnow reporting, nearly one-fifth of Great Portland Estates’ flexible workspace portfolio is now occupied by AI companies. London-based AI firms raised £2.7 billion in 2024 alone, bringing total AI investment to £9.9 billion over the past five years—representing 71% of all UK AI funding. With over 1,600 AI startups now based in the capital, this sector is quietly becoming a structural driver of office demand.
The Unexpected Growth Sectors: Education and Healthcare
The most surprising development in London’s tenant mix is the emergence of education and healthcare as significant office occupiers. According to Savills’ Q3 2025 data, the Public Services, Education & Health sector has already surpassed the annual levels of demand recorded over the past three years, despite accounting for just 8% of overall leasing. The healthcare sub-sector has shown particular momentum, with over 370,000 square feet leased in H1 2025 alone—more than the total for all of 2024.
The education sector’s expansion has been driven by regional universities establishing London satellite campuses to capitalise on rising student numbers. According to Savills’ education sector research, twelve universities from outside London have leased office space since 2020, with average deal sizes 43% larger than other business sectors. These occupiers also commit to longer leases—averaging eleven years versus eight years for other sectors—making them particularly attractive to landlords.
Major healthcare transactions have included Cleveland Clinic’s expansion at 40 Grosvenor Place in Victoria, where the US medical centre pre-let approximately 85,000 square feet in 2025—adding to its existing footprint as it establishes its London presence. This pattern of international healthcare institutions entering the London market represents a new and growing demand driver.
What’s Declining: Serviced Office Providers Pull Back
Not all sectors are expanding. Savills reports that demand from Serviced Office Providers fell 23% in 2025 compared to the same period in 2024. After years of aggressive expansion by operators like WeWork, the flexible workspace sector appears to be consolidating rather than growing. This represents a notable shift from the pre-pandemic period when serviced office providers were among the most active acquirers of space in Central London.
The pullback reflects both market maturation and a recognition that traditional occupiers increasingly want flexibility built into their direct leases rather than through intermediaries. Fitted space—offices delivered with furniture and infrastructure in place—has accounted for one-third of all London transactions in 2025, up from previous years, suggesting that landlords are adapting to provide flexibility directly.
Implications for Investors
The shifting tenant mix has direct implications for how firms like Greycoat approach acquisitions and asset management. Buildings that can attract the premium-paying financial services sector while also appealing to tech firms and emerging sectors like healthcare command the strongest valuations. According to Cushman & Wakefield, Grade A space accounted for 65% of total leasing in 2024—well above the long-term average—reflecting the intense demand for quality.
Millican’s observation about stabilisation is crucial. “I think for most people it’s stabilised,” he said of tenant requirements. “A lot of people now have a much better view about what they need.” This clarity, after years of pandemic-induced uncertainty, is translating into leasing decisions. More occupiers are seeking to increase their space (54%) than decrease it (16%), and active demand across Central London stands at 13.2 million square feet—43% above the long-term average.
For developers and investors, the message is clear: the tenant base is diversifying, sustainability credentials are non-negotiable, and location quality matters more than ever. The firms that understand who is actually signing leases—and what those tenants now expect—will be positioned to thrive in a market where the two-tier divide between prime and secondary space continues to widen.