City of London firms find no more room at the top

The City of London has a success problem.

- Emma Haslett

Top-quality offices in the Square Mile are suddenly in high demand but the amount of space on offer is dwindling, and insiders fear London could lose out as a result.

According to figures from Savills UK, the estate agent, companies leased 3.1m sq ft of space in the City in the first half of the year, up 12% on the long-term average. Last month, US law firm Proskauer Rose agreed to pay £147 per sq ft for the entire 46th floor of the 8 Bishopsgate tower, smashing a price record set just months earlier by the Brazilian lender, Banco Master.

It's a far cry from the pandemic, when office leasing activity fell to its lowest level on record. Five years later, companies ordering workers back into the office are finding they need more space.