The Occupier – 2026 Outlook: From Reset to Structural Adjustment
Each year, our opening issue sets the tone for the 12 months ahead. This edition moves beyond reviewing recent leasing statistics and instead focuses squarely on what businesses should expect next. The conclusion is clear: the London office market has transitioned from post pandemic reset into a period of structural adjustment. In this environment, timing, planning and cost control will matter more than ever.
A layered cost environment
Workforce costs, rental levels, technology investment and business rates are no longer moving independently. They are converging into a more complex occupational cost structure. For many businesses, the question is no longer whether costs are rising, but how to manage them strategically and holistically.
Workplace strategy is people strategy
Location and quality decisions are now judged through the lens of talent. The ability to attract, retain and develop people is shaping property decisions in a way that is more explicit than at any point in the past decade. The office is not simply a space decision. It is a culture and performance decision.
Regional momentum builds
Cost differentials, resilience planning and access to diverse talent pools are pushing regional markets higher up the agenda. This is not a narrative of London versus the regions, but one of complementary hubs and more distributed workplace models.
Selective growth and polarised demand
Sectors aligned to regulation, resilience and technology adoption remain active. At the same time, demand continues to polarise between high quality Grade A space in core locations and value driven options elsewhere. Supply is tightening gradually, reinforcing the importance of forward planning.
Early engagement will be rewarded
In a market characterised by higher rental baselines and more nuanced availability, delay carries risk. Businesses with lease events within the next 24 months, or those reassessing occupational costs, should be engaging early to protect optionality and negotiating strength.
If you would like to discuss how these themes apply to your organisation’s footprint, cost profile or upcoming lease events, our team would be pleased to share further insight.
