London has long been a magnet for U.S. companies, with its vibrant business environment and strategic location making it an ideal hub for international operations. Over the last decade, U.S. firms have consistently played a significant role in shaping the Central London office market, accounting for a substantial portion of leasing activity. The recent announcement of new ‘reciprocal’ U.S. tariffs on what President Trump called ‘Liberation Day’ is likely to change the landscape of global trade and thus create both challenges and opportunities for London.
A Special Relationship
The UK has been subjected to the lower end of the new ‘reciprocal’ tariffs at 10%, rising to 11.6% when product specific tariffs (which usurp those of national level) are applied - considerably lower than some other nations, including others within the European Union. The tariffs are also only applied to goods imports rather than services, the latter of which made up a 68% majority of UK exports to the U.S. in the year to Q3 2024.
While immune from the direct goods import tariffs, there will likely be a degree of impact from the wider economic fallout from the measures which are widely anticipated to slow growth, in turn dragging on the success of the services sector. The counter to this would be that increased bureaucracy in trade raises the need for strong accountancy, legal and strategy advice – potentially providing a fillip to these areas of the economy.
Even taking into account office space related to manufacturing, the services sector is also much more relevant to the Central London office market, accounting for 71% of leasing activity in 2024. Additionally, looking at U.S. firms’ demand in the market, the services sector has an even greater majority, accounting for 85% of this sects office leases in Central London from 2021 to 2024.
There is an additional potential upside to for the Central London office market. Being placed between the European Union and the U.S. – both geographically and politically – means that the UK may be better insulated from the volatility of the relationship between the two. This could raise the attractiveness of London for businesses looking to manage transatlantic interests without picking one side over the other.
U.S. Companies and Central London
Over the last decade, companies headquartered in the U.S. have made up 32% of Central London office leasing over 10,000 sq ft. This is second only to the UK, which accounted for 50%, with the rest of the world accounting for the remaining 17%. In context, this translates to an average of 2.9 million sq ft per annum, with the most active year being 2018 – when leasing volumes totalled 3.9 million ft. The largest occupiers to take space during this period include Apple at Battersea Power Station and Meta (then Facebook) at 11 Canal Reach.
As well as established occupiers, newer and rapidly expanding U.S. firms also show an enduring interest in Central London. In 2024 alone, data from Cushman & Wakefield’s upcoming London Moves report found U.S. companies made up 44% of the new entrants into the capital by count.
Source: Cushman & Wakefield
Presidential Differences
Source: Cushman & Wakefield
