U.S. Tech, Finance Giants Drive London Office Surge

London’s Square Mile is back in the global spotlight as American firms lead a rush into the financial capital’s trophy towers.

Hedge funds, tech giants and law firms are locking in space at record prices, reshaping the market once thought vulnerable after Brexit, the Wall Street Journal reported.

Citadel and Citadel Securities claimed a third of one tower slated for 2027 delivery, while BlackRock and HSBC are straining against their footprints. Technology firms, including Apple and TikTok, are adding fuel to the local market’s fire.

The surge has pushed rents for “super-prime” offices past $160 per square foot, well above Park Avenue levels in New York.

The activity underscores how the City — the historic financial district dubbed the City of London — has broadened beyond its banking-and-insurance roots. U.S. law firms, for instance, are bulking up to chase cross-border deal work and private equity clients.

Developers are responding with towers that double as lifestyle hubs, where tenants get saunas, restaurants and even climbing walls with skyline views intended to lure employees and add to the area’s air of prestige.

The bullish momentum comes with caveats. Supply is tightening: few completions are expected later this decade. Most area metro stations aren’t seeing the same foot traffic compared to pre-pandemic times. And heritage watchdogs continue to spar with planners over skyscrapers crowding St. Paul’s and the Tower of London.

Still, landlords have reason to be confident. Corporate occupiers that inked temporary leases in the Covid years are now pursuing long-term deals, while the City of London Corporation is leaning hard into cultural upgrades and skyline-defining projects to keep demand flowing.

The result: a market that looks less like a post-Brexit casualty and more like a case study in reinvention. For investors and owners, the message is clear — London’s Square Mile has reclaimed a spot as one of Europe’s premier addresses for deep-pocketed tenants.

— Holden Walter-Warner