UK Regional Offices MarketBeat

For the data behind the commentary, download the full Q1 2026 UK Offices Report.

Office Demand from AI occupiers is spilling over into regional markets

Artificial intelligence (AI) is reshaping all parts of the economy, but its implications for the office market are particularly significant, affecting not only how space is used but also the profile of occupiers driving demand. 

In London, AI-focused companies – where AI is the core product or primary business model – are expanding rapidly, reinforcing the capital’s position as Europe’s leading AI hub. Recent lettings to Anthropic (158,000 sq ft) and OpenAI (88,500 sq ft) highlight the scale of this demand. AI-led firms accounted for 15% of technology take-up in 2025, rising sharply to around half of tech take-up and 12% of all space leased in Q1. 

While this momentum has yet to translate directly into large-scale requirements from major AI developers in the regions, early evidence suggests that AI is already supporting demand across the broader AI supply chain. 

At the infrastructure end, companies underpinning AI development are taking space. Nvidia (AI chipmaker) secured 10,775 sq ft of prime Grade A space in Cambridge, while Graphcore (AI chip designer) leased 68,504 sq ft in Bristol. helping to push headline rents in the city to £52.00 psf. 

Elsewhere, take-up is emerging from occupiers applying AI within other sectors. In Q1, Wordsmith AI (legal AI platform) took 8,813 sq ft in Edinburgh, while Roark Aerospace (autonomous defence systems) leased 13,650 sq ft in Cambridge, illustrating the breadth of AI-focused demand. 

Overall, AI-focused take-up totalled 103,931 sq ft, accounting for 24% of technology sector activity and 7% of total take-up in the quarter. This marks a significant increase on the 48,000 sq ft recorded across seven deals in 2024. 

Looking ahead, it remains uncertain whether AI will materially increase overall technology take-up or simply account for a larger share of it as capital and talent are reallocated. There are also potential displacement effects as automation reshapes certain roles, although adoption remains gradual, with over two-thirds of UK businesses not yet using AI as a core part of operations (ONS Business & Insights Survey, 2026). 

Lessons from past technological shifts such as the computer and the internet, demonstrate that while innovation can displace certain roles in the short term, the productivity gains ultimately drive economic growth that creates more jobs than are lost over the long run. This is reflected in analysis by Goldman Sachs, which estimates that around 60% of today’s workers are employed in occupations that did not exist in 1940. In the near term, however, AI-focused occupiers are already emerging as a meaningful and growing source of demand in the regional office market.