London and the South East are witnessing a quiet reshaping of their office landscapes-and education providers are at the center of it. Once dominated by customary corporate occupiers,key districts across the capital and its commuter belt are increasingly being driven by universities,colleges,training companies and alternative education platforms searching for flexible,well-connected space. This shift is not merely a post-pandemic footnote; it is indeed emerging as a structural change in demand that is influencing advancement pipelines, investment strategies and rental dynamics.
Savills’ May 2023 “Spotlight” report on the growth of the education sector in the London and South East office market tracks how and why education has become one of the most active and resilient occupier groups.From international student demand and policy changes to the rise of lifelong learning and skills-based training, a convergence of forces is propelling education providers into prime office locations. In doing so, they are redrawing traditional boundaries between commercial and institutional real estate-and offering a glimpse of how the region’s office market may evolve in the decade ahead.
Rising demand from education occupiers reshapes London and South East office markets
The influx of universities, autonomous schools and specialist training providers into core business locations is no longer a niche trend but a structural shift, altering rental dynamics, block configurations and the tenor of lease negotiations across London and the South East. These occupiers are seeking proximity to transport hubs, talent clusters and cultural amenities, which has pushed them into direct competition with traditional corporate tenants for well-specified space, particularly in zones with strong student catchments. As a result, landlords are rethinking their offer, from enhanced digital infrastructure and flexible floorplates to improved wellbeing and social spaces that support blended learning and extended operating hours.
This pivot is also redrawing the map of perceived “prime” and “secondary” office locations, with some fringe districts gaining prominence as education hotspots able to absorb refurbished stock and support placemaking around campus-style environments. Rental evidence increasingly shows a two-tier market emerging, where well-connected assets capable of accommodating lecture theatres, breakout areas and collaboration zones outperform outdated, cellular layouts.The table below highlights how this is playing out in key submarkets, illustrating the shift in take-up patterns and tenant mix:
| Submarket | Education Share of Take-up* | Typical Requirement |
|---|---|---|
| Central London Core | 18-22% | High-spec floors, strong transport, branding potential |
| Inner London Fringe | 25-30% | Campus-style buildings, larger floorplates, value-led rents |
| South East Town Centres | 10-15% | Refurbished stock, flexible leases, mixed-use settings |
*Illustrative ranges based on Savills market intelligence
Location hotspots and leasing trends driving expansion of independent and higher education providers
The most dynamic clusters are emerging along key transport spines, where students and staff can switch seamlessly between campus, workplace and home. In London, King’s Cross-Euston, Shoreditch-Liverpool Street and the South Bank continue to attract a critical mass of independent providers, drawn by tech-adjacent ecosystems and flexible Grade B space that can be retrofitted quickly.In the South East, Guildford, Reading and Brighton are acting as satellite hubs, offering lower occupational costs while remaining firmly plugged into the capital via fast rail. Landlords in these postcodes are reshaping their offer to appeal to education occupiers, prioritising floorplate efficiency, natural light and plug‑and‑play connectivity over traditional corporate fit‑outs.
- Proximity to mainline and Tube hubs is now a primary determinant of demand.
- Shorter leases and managed solutions are preferred by growth-stage institutions testing new markets.
- Repurposed retail and secondary offices provide cost‑effective teaching and collaboration space.
- Hybrid learning models are driving interest in smaller satellite suites across multiple towns.
| Hotspot | Typical Lease Length | Key Driver |
|---|---|---|
| King’s Cross-Euston | 5-10 years | Rail connectivity & brand visibility |
| Shoreditch | 3-5 years | Access to digital talent |
| Guildford | 5-7 years | Lower rents, strong student base |
| Reading | 3-7 years | Elizabeth line and corporate links |
Design, specification and amenity requirements for education ready office space
Providers entering or expanding in the London and South East market are demanding buildings that look and perform more like modern higher education campuses than traditional offices. Floorplates need to be flexible enough to accommodate a mix of seminar rooms, skills labs, collaborative studios and exam spaces, often on the same level. High floor-to-ceiling heights, enhanced acoustic treatment and resilient digital infrastructure – including dual fibre lines and robust Wi-Fi coverage – are no longer optional. Landlords who can demonstrate future‑proofed M&E capacity, generous loading for specialist equipment and clear routes for internal reconfiguration are winning the most interest from education occupiers seeking fast delivery and minimal disruption to teaching cycles.
Amenity is equally decisive, with education operators prioritising environments that attract and retain both students and staff. Key features include:
- Student‑first communal areas – lounge-style breakout zones, informal study booths and quiet rooms.
- Wellbeing facilities – on-site gym or fitness studios, prayer/meditation rooms, cycle storage and high-quality showers.
- Public‑facing ground floors – café space, exhibition areas and reception zones designed for open days and community events.
- Urban connectivity – proximity to transport hubs, safe evening access and secure, visible entrances.
| Requirement | Education‑Led Spec |
|---|---|
| Typical floorplate | Open, easily subdivided, 10,000-20,000 sq ft |
| Technology | High‑density Wi‑Fi, AV‑ready rooms, dual fibre |
| Services capacity | Upsized power, cooling and ventilation for full‑day teaching |
| On‑site amenities | Learning commons, café, bike store, wellbeing spaces |
Strategic recommendations for landlords and investors targeting the growing education tenant base
As universities, specialist colleges and private training providers expand across London and the South East, landlords who curate space around their operational realities will be best placed to capture this deepening demand. Flexible floorplates that can toggle between teaching, collaboration and back-office use are now as crucial as headline rent, while robust digital infrastructure and acoustic performance are becoming non‑negotiables. Forward‑thinking investors are also exploring mixed academic and commercial ecosystems, where education tenants benefit from proximity to corporate partners, incubators and local amenities, reinforcing the long‑term stickiness of occupation. Aligning lease structures to academic cycles and funding timetables, as well as allowing for phased take‑up of space, can further de‑risk voids and smooth income profiles.
- Prioritise location adjacencies – focus on clusters near existing campuses, transport interchanges and knowledge corridors.
- Design for hybrid learning – specify higher power loads, resilient Wi‑Fi and sound‑treated seminar rooms.
- Offer adaptable lease terms – consider break options, expansion rights and pre‑agreed fit‑out protocols.
- Advance ESG credentials – energy‑efficient buildings and wellness‑oriented design increasingly influence institutional education occupiers.
| Focus Area | Landlord Action | Education Tenant Benefit |
|---|---|---|
| Building specification | Upgrade IT backbone, acoustics, air quality | Reliable digital delivery and comfortable teaching space |
| Lease structure | Align terms with academic years and intake peaks | Predictable occupancy planning and budget certainty |
| Community integration | Curate ground‑floor uses and shared amenities | Enhanced student experience and stronger local links |
The Way Forward
Looking ahead, the interplay between education providers and the office market in London and the South East is set to become even more pronounced. As universities, independent schools and alternative providers continue to expand and diversify, their requirements will shape not only rental demand, but also building specification, location strategy and long‑term investment patterns.
For landlords and developers, this presents both chance and challenge: catering to an increasingly refined occupier base while balancing flexibility, resilience and returns. For local authorities and policymakers, it underlines the role of education as an anchor for regeneration, talent retention and economic growth.
What is clear from the data is that education is no longer a marginal or cyclical component of the regional office story. It is a structural force in the market – one that will continue to influence how,where and why space is taken,and which will remain central to understanding the next phase of growth across London and the South East.
