Recruitment firms remain active in the London office market, but recent leasing activity points to a clear reset in how the sector is approaching workplace decisions.
Devono’s Recruitment Sector Leasing in London report reviews office leasing activity across the sector, analysing where firms are taking space, how requirements are changing and what recent activity reveals about cost control, location strategy and lease flexibility.
The report shows that leasing activity fell sharply in 2025, with take-up dropping to just under 89,000 sq ft, down 60% on 2024 and nearly two-thirds below the 2019 peak. Deal volumes also reduced, falling to 23 transactions compared with 36 in 2024. However, rather than signalling a withdrawal from the market, the data points to a more disciplined and selective phase of demand.
Recruitment firms are increasingly prioritising smaller, lower-risk requirements, with average deal sizes falling to 3,869 sq ft. Cost-first decision-making also came to the fore, with 100% of leasing activity taking place in secondhand space. Despite this shift, average achieved rents remained resilient at £64.11 per sq ft, reflecting continued competition for well-located, good-quality offices.
The City remains the sector’s core market, although its share of activity has softened, while Southbank emerged as a key growth location in 2025. Looking ahead, recruitment occupiers are expected to remain highly focused on cost, flexibility and talent access. For many firms, 2026 will be less about taking more space and more about securing the right space, in the right location, on terms that support a more cautious but stabilising market.
