British Land reported a 5% rise in recurring underlying profit to £294 million, boosted by a surge in demand from artificial‑intelligence companies for premium office space. The FTSE 100 landlord leased 3.8 million sq ft at 7.2% above estimated rental values, the strongest office take‑up in two decades.

Anthropic and other AI firms fill 3.8 million sq ft of London space

According to the report, new tenants linked to AI, including the chatbot developer Anthropic, signed leases that pushed the total leased area to 3.8 million square feet in the year to March 2024. This activity lifted rental rates 7.2% above market estimates, a clear premium for locations that can host high‑density computing and talent clusters.

Central London office demnad hits 20‑year high

The surge in AI‑driven leasing helped central London office take‑up reach its highest level in 20 years, as noted by British Land. The firm attributes the spike to both the tech sector’s expansion and a broader post‑pandemic return to premium office environments.

Retail parks near full occupancy bolster overall earnings

British Land also highlighted strong performance at its retail parks, such as Fort Kinnaird in Edinburgh and Whiteley in Hampshire, where occupancy hit 99%. The retail side contributed to the 5% profit lift and supports the company’s outlook for 3‑6% annual growth over the next few years.

Analysts question sustainability of AI‑led rent premiums

While the firm expects earnings per share to rise at least 5% to 30.5p, analysts remain cautious about how long AI tenants can sustain above‑market rents, especially if broader economic pressures curb office demand. The report notes that British Land’s share price slipped 0.17% after the announcement, following an 8% decline over the past year.

Who will fill the next wave of AI‑driven office space?

The source did not identify additional AI companies beyond Anthropic, leaving open which firms will next sign high‑value leases and whether the trend will spread beyond central London.. Further data on lease lengths and tenant credit quality will be needed to gauge long‑term impact.