London's status as Europe's primary location for corporate headquarters is at risk, according to warnings from leading developers and investors. This comes as the City of London faces an increasing shortage of office space.
New research from the London Property Alliance (LPA), which represents property owners, developers, and investors, indicates that the UK capital attracts three times more European headquarters than any other city on the continent. The LPA also reported an 84 per cent surge in head offices in London between 2019 and 2025, with the city hosting 3,185 head offices last year, up from 1,735 in 2019.
Despite this growth, the LPA has cautioned that London's standing as a global headquarters hub is jeopardised by the scarcity of office space in high-demand areas such as the Square Mile and Canary Wharf. Office vacancy rates in these sought-after locations are between zero and 0.8 per cent, leaving global firms with limited options for expansion or new sites.
James Raynor, chair of the Westminster Property Association, part of the LPA, stated that businesses continue to choose London for investment and growth, but warned against complacency in a competitive global market. The LPA has urged the government to designate key office developments as critical economic infrastructure to expedite planning approvals and address rising building costs and regulatory hurdles.