London has lost the equivalent of 28 Gherkin buildings in office space over recent years. Between 2018 and 2023, around 14 million sq ft of offices in the West End and the City were converted into hotels, flats, or student accommodation. Developers leveraged new rights to bypass full planning approvals, shifting their assets toward sectors they expected to perform better post-Covid, according to The Times.
Strong Demand Amid Limited Supply
Despite these losses, demand for office space is surging. Companies including PwC, Bank of America, and Disney are seeking a combined 10 million sq ft of offices — 7% above London’s historic average.
Vacancy rates for top-tier offices have dropped to historic lows of under 2%. Analysts predict that by 2028, no prime office space will remain available in the City, with a projected shortfall of 11 million sq ft across central London over the next five years.
Obsolescence Threatens Half of Existing Offices
More than half of London’s remaining office buildings are expected to become obsolete by 2030. Approximately 147 million sq ft are considered “secondary” — older, less energy-efficient structures increasingly avoided by businesses looking to meet sustainability goals and upcoming energy efficiency regulations.
Calls for Action on Refurbishment
Industry bodies including Knight Frank and the London Property Alliance are urging the government and local authorities to treat offices as “economic infrastructure.” They recommend prioritizing the refurbishment of at-risk buildings, arguing that doing so could generate an estimated £84 billion economic boost through job creation and higher productivity. Additional measures proposed include stricter limits on change-of-use grants and continuous monitoring of central London office stock to prevent further losses.
Outlook for the Market
While new developments are planned—roughly 15 million sq ft by 2029—much of this space is already pre-let or outside central business hubs. The market is showing resilience, fueled by companies encouraging staff to return to offices with upgraded workplaces, but the supply-demand imbalance underscores an urgent need for strategic planning and investment in London’s office infrastructure.
