The energy sector remains an important part of the central London office market, but recent leasing activity points to a more selective, segmented and function-led approach to workplace decision-making.
Devono’s Energy Sector Leasing in Central London report reviews office leasing activity across the sector, analysing where energy firms are taking space, how requirements are changing and what recent activity reveals about location preferences, rental appetite and building quality.
Following an exceptional year in 2024, energy sector leasing activity reset sharply in 2025. Take-up declined by 72% year-on-year to 106,000 sq ft, with no mega deals recorded and demand shifting towards smaller, operationally driven requirements. While overall activity reduced, achieved rents remained firm, underpinned by continued competition for best-in-class space.
The report also highlights a more fragmented leasing profile across subsectors. Oil & gas remains a core driver of demand, renewables continue to build momentum with greater flexibility on location, utilities have returned to more typical levels, and nuclear remains niche and project-led. This divergence is also shaping location strategy, with the West End leading activity in 2025, Midtown re-emerging and the City seeing a lower share of leasing.
Looking ahead, the sector is expected to remain active but more targeted in how it approaches office space. As the energy market continues to transition, occupiers are likely to place greater emphasis on cost control, flexibility, ESG credentials, amenities and workplace experience. For energy firms, future real estate decisions will increasingly be shaped by function, talent access, operational efficiency and the ability to secure high-quality space on the right terms.
