The majority of global prime office leasing deals were expansionary in H1 2026, including nearly four fifths of flex office deals and all major AI deals, according to data from Savills.
While leasing volumes remained stable in the first half, expansionary deals accounted for 58% of all activity, a sign that more firms seeking the top tier of offices are “moving into growth mode”, the agency’s ‘Market Makers’ report suggests.
Only 5% of top office deals involved occupiers reducing their space, while the share of firms relocating or renewing at a similar footprint fell from 44% last half to 37% in H1.
Flex firms were the most likely to expand their space in the first half of 2026, with 78% of deals representing expansions.
More than half (56%) of these deals were for new office space within markets they already had an office presence, suggesting flex providers are deepening their footprint in their selected cities.
Unsurprisingly, AI companies emerged as one of the fastest-growing occupier groups across the prime global office market. They accounted for 17% of all prime technology sector deals in H1, up from 3% two years ago, and every deal was expansionary.
Leasing within the AI sector remains concentrated in established clusters, namely San Francisco and Seattle in the US and London’s West End.
Sarah Brooks, associate director of Savills World Research, said: “The growing influence of AI and technology occupiers has been unmistakable in H1. In cities such as San Francisco, London and Shenzhen, demand from AI firms is rapidly absorbing high-quality space and intensifying competition for the most desirable offices as firms make significant long-term investments in flagship workplaces that support client engagement, attract talent and reinforce their brands.
“Assuming this trend continues, we may see the emerging sector becoming increasingly influential in other geographies as well.”
Rick Schuham, chief executive of global occupier services at Savills, added: “Organisations continue to prioritise premium offices, concentrating demand on the best buildings in the most desirable locations, and continuing to place upward pressure on costs.
“However, there are some notable markets witnessing a slowing pace of occupier cost growth for best-in-class offices, including primary markets in mainland China which are experiencing slower demand and increased availability as new developments and refurbishments complete. This new inventory is creating pockets of opportunity for businesses to access high-quality space at a more moderate cost. Understanding local supply dynamics alongside headline rental trends remains critical when making real estate decisions in today’s market.”
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