Friday, October 16, 2026

AI firms boost demand for flex space in London tech clusters

The report highlights the Knowledge Quarter as a key location where AI businesses are using flexible workspace to access London’s technology ecosystem.

London’s flexible office market is benefiting from growing demand among artificial intelligence (AI) companies seeking space close to established technology and research clusters, according to Cushman & Wakefield.

In its Global Trends in Flexible Office 2026 report, the company says flexible workspace is playing an increasingly important role in supporting the UK’s expansion as an AI hub, particularly in London. 

The report identifies the Knowledge Quarter as a standout location, where emerging AI businesses are seeking flexible workspace that allows them to position themselves close to major technology, research and innovation organisations.

Cushman & Wakefield says the ability to access well-located space without taking on a traditional long-term lease is particularly valuable for fast-growing AI companies, whose headcount and space requirements can change rapidly.

The report also points to the importance of clustering within emerging sectors. Smaller AI firms can use flexible workspace to locate alongside larger technology businesses and established industry players, gaining access to talent, investment and wider innovation networks.

This relationship between AI companies and flexible workspace is expected to strengthen as operators adapt their offer to better meet the requirements of technology-led occupiers.

The UK’s wider flexible office market remains among the most mature in EMEA, with its maturity score rising from 93% in 2025 to 94% in 2026. Cushman & Wakefield says the UK retained its position as the region’s leading flex market, ahead of France. 

The report says future growth in the UK flex sector is likely to be increasingly influenced by the expansion of AI businesses, particularly in supply-constrained locations where companies need access to high-quality workspace without the cost and time associated with fitting out conventional offices.

Deviki Patel
Deviki Patel
Deviki is a Digital Journalist at AI PropTech News, Rental Living News and BTR News. She holds a BA (Hons) in Law and an LLM from the University of Leicester. Having transitioned from a background in property law, she brings a strong foundation in research and analytical thinking, supporting the delivery of well-informed, insight-led content across the Living and PropTech sectors.

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