By Eugene O’Sullivan
A clearer view of how technology companies are approaching office space in London
There is a widely repeated idea that technology companies have moved away from offices altogether.
It sounds convincing, but it does not reflect what is actually happening on the ground.
Across London, the tech sector has not abandoned office space. It has become far more deliberate about how it uses it.
A shift from growth at all costs to disciplined decision-making
Over the last decade, many technology businesses took office space based on expected growth.
Headcount was projected to increase quickly. Space was secured in anticipation of that expansion.
That approach has changed.
Today, leadership teams are under greater financial scrutiny. Hiring is more measured. Property decisions are considered alongside funding, not after it.
Space is no longer taken on expectation.
It is taken on justification.
Demand has not disappeared. It has become more selective
In key London locations such as Farringdon, Clerkenwell, Shoreditch and Old Street, demand from technology companies remains active.
What has changed is the type of space they are willing to commit to.
There is a clear preference for:
- Strong natural light and well-designed layouts
- Buildings with credible sustainability credentials
- Spaces that support collaboration and team interaction
- Offices that reflect brand and culture to both employees and clients
At the same time, there is a clear rejection of inefficient space.
Larger footprints with poor design or outdated specifications are increasingly avoided.
Hybrid working has changed the role of the office, not removed it
Hybrid working is often seen as the reason demand has reduced.
In reality, it has changed how the office is used.
The office is no longer a place employees attend by default.
It is now where:
- Teams collaborate on complex work
- Company culture is built and reinforced
- Clients are hosted
- Potential hires decide whether the business feels right for them
This shift explains why higher-quality buildings continue to perform well.
Well-invested space attracts demand. Secondary space without meaningful upgrades is being left behind.
Lease structures are becoming more flexible
There has also been a clear change in how technology businesses approach leases.
Earlier-stage companies may still choose serviced offices for speed and flexibility.
As businesses scale, many move towards managed space or traditional leases that include protection.
Common requirements now include:
- Break options
- Stepped rental structures
- Meaningful incentive packages
- Flexibility aligned to funding timelines
Long, inflexible lease commitments are far less common than they once were.
Landlords are adjusting to a more informed occupier
Landlords have adapted to this shift.
With higher vacancy in parts of the market, many are more open to structuring deals that reflect how modern occupiers operate.
This includes greater flexibility and more competitive terms.
For occupiers, this creates opportunity, but only if approached correctly.
Funding cycles still shape property decisions
Technology businesses remain closely tied to funding conditions.
When capital is readily available, expansion tends to follow.
When funding tightens, decisions become more analytical and risk-aware.
Across London, this has led to more alignment between property strategy and funding milestones.
Moves are more deliberate. Commitments are more carefully assessed.
London remains a leading technology hub
Despite changes in behaviour, London continues to be one of Europe’s strongest technology markets.
Particularly across:
- Fintech
- Artificial intelligence
- Cybersecurity
- SaaS
The talent pool remains strong. Investment activity continues. Demand for space is still present.
It is simply more considered than before.
Why tenant representation matters more in this market
As decision-making becomes more precise, the cost of getting it wrong increases.
The wrong lease can affect:
- Cash flow
- Hiring and retention
- Operational flexibility
- Long-term growth
For technology businesses, where people are the primary asset, the working environment plays a direct role in performance.
This is where specialist tenant advice becomes critical.
At Morgan Pryce, the focus is entirely on the occupier.
That means:
- Structuring leases around business needs, not landlord priorities
- Identifying opportunities in a changing market
- Negotiating terms that reflect current conditions, not historic assumptions
- Supporting relocation or renewal decisions with clear commercial logic
The objective is not just to secure space.
It is to support better business decisions.
Final thought: the office is now about precision, not presence
The role of the office has not disappeared.
It has evolved.
For technology companies, it is no longer about scale for appearance.
It is about selecting the right space, in the right location, on the right terms.
In a market that rewards precision, property is no longer just an operational requirement.
It is a strategic lever.
