The average office rent in London ranges depending on the location, space type, and amenities. Typically office rent can range from £40 to £120 per square foot per year in London. While outer boroughs provide more reasonably priced options, upscale locations such as Mayfair or the City of London fetch greater prices. Depending on your location and size of your office, you can spend between £2,000 per month to several million per month. At a basic level, you have:
- Economical office space: £475 per desk per month
- Average office space: £619 per desk per month
- High-end office space: £794 per desk per month.
It is crucial for businesses thinking about London to comprehend the expenses, inclusions, and savings opportunities strategies. Here is an in-depth description to assist you.
This article will explain the average office rent in London price range per square foot. Teaches you what’s included, how to budget for exclusions, and strategies to save on prime and affordable office spaces. Find tips for negotiating leases and reducing costs in London.
What is Included When You Rent an Office in London?
When you rent an office in London, Various features and services could be included in the price of renting an office in London. Whether the office is typically leased or serviced affects this.
Typical Inclusions
- The actual area, expressed in square feet, is called the office space.
- Utilities: Basic services include power, water, and heating, especially in serviced offices.
- Maintenance: Maintaining the cleanliness and condition of communal places.
- Furnishings: Desks, chairs, and other essentials are usually included in serviced spaces.
- High-Speed Internet: Many packages provided by serviced offices include internet access.
- Facilities: Provide conference rooms, shared kitchens, breakout areas, rooftops.
- Features: Examples of security include CCTV and reception staff.
These factors facilitate budgeting in serviced workplaces, even though standard leases would require additional arrangements.
For additional information on UK tenant rights and laws, see the UK Government’s Business Rates Guidance.
What Is Not Covered by London Office Rentals?
While some essentials are covered by your rent, the tenant is typically in charge of other costs.
Exclusions To Budget For
Business Rates: Based on their rateable value, commercial properties must pay local council tax.
Insurance: Tenants are responsible for having both public liability and contents insurance.
Utility Bills: Gas and electricity are frequently distinct utilities in conventional leases.
Fit-Out Costs: In most cases, you are in charge of paying to have the space altered to meet your needs, some offices are fitted and include desks and furniture and some do not.
Landlines and custom IT infrastructure may not be included in telecom systems.
Accurate budgeting and avoiding unforeseen expenses are made easier when you know what is excluded.
Which Areas in London Charge More to Rent an Office?
Office rents vary widely across London. Prime areas are significantly more expensive, but there are more affordable offices to rent in outer London boroughs.
| Area | Rent (£/sq ft/year) | Rates (£/sq ft/year) | Service Charge (£/sq ft/year) | Total Cost (£/sq ft/year) |
|---|---|---|---|---|
| Mayfair | £85 | £42 | £15 | £142 |
| St James’s | £85 | £42 | £15 | £142 |
| Knightsbridge | £70 | £35 | £15 | £120 |
| Soho | £75 | £32 | £15 | £122 |
| Marylebone | £75 | £33 | £15 | £123 |
| Oxford Street | £70 | £32 | £15 | £117 |
| The City (Financial District) | £63 | £28 | £15 | £106 |
| Victoria | £68 | £30 | £15 | £113 |
| Covent Garden | £67 | £30 | £15 | £112 |
| King’s Cross | £65 | £25 | £15 | £105 |
| Paddington | £65 | £25 | £15 | £105 |
| Waterloo & London Bridge | £50 | £20 | £15 | £85 |
| Shoreditch | £55 | £20 | £15 | £90 |
| Canary Wharf | £40 | £18 | £15 | £73 |
| Farringdon & Clerkenwell | £60 | £20 | £15 | £95 |
Expensive Office Areas in London
The most prestigious neighbourhoods are offices in Mayfair and St. James’s, which cost more than £120 a square foot a year.
The City of London, a significant financial hub, has rents ranging from £70 to £110 per square foot.
Creative districts like Soho and Covent Garden cost between £80 and £100 per square foot.
Canary Wharf: Modern offices that range in price from £50 to £60 per square foot.
Areas With Reasonably Priced Offices In London
Office space in Stratford, East London, costs between £30 and £50 per square foot.
Rents in Croydon range from £25 to £35 per square foot, making it a burgeoning business hub.
Hammersmith: It’s central but reasonably priced, with prices ranging from £40 to £55 per square foot.
It’s crucial to adapt your workplace location to your budget in light of these discrepancies. For detailed advice, you can consult TheBritish Property Federation.
Inset: Abermarle Street in Mayfair – one of the most priciest rental spaces in London
How to Lower Your London Office Rent
You might be able to lower your London office rent with smart planning.
Practical Tips
- Think About Co-Working Spaces: Shared offices are flexible and reasonably priced.
- Select the Outer Boroughs: Rents are lower in areas farthest from central London, such as Surrey, Croydon, Worthing and Hertfordshire
- Discuss the terms of the lease: Speak to your landlord for negotiate your leases, payment holidays and discounts
- Sublease: By leasing unused space to another business, you can reduce the overall cost.
- Minimise: Only rent the space you truly need. Be economical and use desks cleverly.
Can I Haggle Over My Lease or Rent?
Yes, very much so, when working with a landlord, you have the opportunity to negotiate on price and timescales. Many landlords will want to tie you in for certain periods such as 12 months or 24 months, but you can negotiate prices for longer leases. You can also feel out the demand and if the landlord is trying to make a sale, you can negotiate.
Individual landlords may be easier to negotiate with than larger organisations such as Regus and WeWork.
How to Win at Office Negotiations
Examine Market Rates: Find out how much similar areas in your neighbourhood charge.
Emphasis on Stability: Landlords like tenants that are financially secure.
Request Rewards: Request benefits like rent-free periods or donations for the fit-out.
Hire a Broker: Getting favourable terms can be aided by an expert.
Be Flexible: By changing lease lengths or conditions, you can increase your influence.
Because landlords often want to keep offices occupied, it is worthwhile to discuss strategies to reduce costs.
The average London office rent depends on the location, type of space, and amenities. Upmarket areas like Mayfair are expensive, while suburban areas like Croydon offer more affordable options. By being aware of what is and is not included, as well as by using strategies like negotiating or selecting flexible spaces, businesses can find the perfect office. For further insights into office rental practices, explore resources from The British Property Federation and The UK Government.