By Fraser Williams, CEO, Morgan Pryce
How occupiers are making more disciplined office decisions in 2026
“Flight to quality” is mentioned in almost every London property update.
It appears in reports, panels and market commentary.
But from the perspective of advising occupiers, it is not a trend.
It is a correction.
The London office market has not fallen away. It has become more selective. And businesses have become more considered in how they approach office space.
A more divided London office market
London is no longer one uniform office market.
There is a clear split.
High-quality buildings in strong locations with good environmental performance and modern amenities continue to attract demand.
At the same time, older or less well-specified buildings are taking longer to lease and often require stronger incentives.
This is not a sudden shift.
It reflects how businesses behave when conditions become less certain. Decisions become more careful. Risk becomes more important.
Smaller offices, better environments
One of the most consistent changes across London office space is a reduction in footprint alongside an increase in quality.
Businesses are taking less space, but choosing better buildings.
This is not about image.
It is about function.
If employees are expected to spend time in the office, the space needs to justify that decision.
That includes:
- Location and accessibility
- Air quality and environmental performance
- Amenities and shared facilities
- Overall experience of the workplace
The office is no longer just operational space.
It plays a role in attracting talent, hosting clients and supporting how a business presents itself.
Prime office space in London is still negotiable
There is a common assumption that prime buildings come with fixed terms.
In practice, that is rarely the case.
Well-advised occupiers are still securing:
- Rent-free periods
- Landlord capital contributions
- Flexible break options
- Practical reinstatement terms
Landlords still need stable income and strong tenants.
That creates room for negotiation.
The difference is that outcomes depend far more on preparation and timing than they did in the past.
The risk of staying put
Remaining in an existing office is often seen as the safer option.
It is not always.
Older buildings without meaningful upgrades are becoming harder to justify.
Energy performance standards are tightening. Running costs are increasing. Subletting weaker space is becoming more difficult.
For some businesses, the greater risk is not moving.
It is staying in space that is slowly becoming less viable.
This is where the shift towards higher-quality buildings becomes a practical decision, not an aspirational one.
How occupiers are approaching decisions now
The most effective leadership teams are approaching property decisions in a measured way.
They focus on a small number of important questions:
- Does the building support the next stage of the business?
- How flexible is the lease if circumstances change?
- What does this decision look like over five years, not just one?
- What is the true total occupational cost?
They are not making reactive decisions.
They are aligning property strategy with business strategy.
That might mean reducing space. It might mean upgrading quality. Often, it means both.
A London office market that rewards better decisions
London is not in decline.
It is adjusting.
Prime buildings are strengthening their position. Secondary stock is being tested. Occupiers are taking a more structured approach to decision-making.
That is a healthier market.
The “flight to quality” is not about spending more.
It is about making better decisions.
Tenant representation: navigating a more selective market
In a more divided market, outcomes are less predictable without the right advice.
At Morgan Pryce, the focus is on helping occupiers navigate that complexity.
That includes:
- Identifying buildings that genuinely support business performance
- Structuring leases to retain flexibility
- Securing incentives even in competitive buildings
- Advising when relocation reduces risk rather than increases it
The aim is not just to secure space.
It is to make a decision that holds up over time.
Final thought: quality is about discipline, not cost
If a business is reviewing its office space in 2026, the starting point should not be rent.
It should be whether the decision strengthens the organisation over the long term.
In a market that is becoming more selective, that distinction matters.
