Renting office space in London can be a game-changer for your business - but how much does office space cost, really? With prices varying widely depending on location, amenities, and lease type, understanding the numbers is essential before committing.

In this guide, we’ll break down typical rental rates across the capital, what influences pricing, and what to expect whether you’re looking for a flexible workspace or a long-term lease.

What Is the Average Cost of Office Space in London?

London is home to the highest office rental rates in the UK. On average:

• Serviced offices range from £477 to £797 per desk per month, depending on location and amenities
  
  
• Traditional leased space in prime areas like Mayfair or the West End can reach up to £150 per square foot per year
  
  

For comparison:

• 22 Bishopsgate - one of London’s most sought-after addresses - has seen rents as high as £122 psf
  
  
• Regional cities like Manchester (£81 psf) or Edinburgh (£78 psf) offer more cost-effective alternatives
  
  

So when asking how much does it cost to rent office space, the answer depends heavily on where you’re looking and what type of space you need. For instance, if you're considering office space in South London or East London, you may find more affordable options compared to Central areas.

What Drives Office Space Cost?

Several key factors determine how much office space costs per square foot:

• Grade of building:
  
  
  
  • Grade A offices are modern, energy-efficient, and fully equipped, commanding premium rents
    
    
  • Grade B spaces tend to be older or refurbished and are more economical
    
    
• Location:
  
  
  
  • Central London (West End, City, Midtown) costs significantly more than outer boroughs
    
    
  • Areas with strong transport links often carry a premium
    
    
• Amenities:
  
  
  
  • Offices with meeting rooms, kitchenettes, breakout areas, or on-site gyms will usually cost more
    
    
  • High-spec fit-outs also drive up both upfront and ongoing office rental costs
    
    
• Sustainability credentials:
  
  
  
  • ESG-compliant buildings are in demand, especially from companies prioritising long-term efficiency and staff well-being
    
    

Flexible vs. Traditional Office Space

The type of lease you choose also affects how much you’ll pay:

• Flexible offices (e.g. serviced, hot-desking, coworking):
  
  
  
  • Priced per desk per month, typically from £180 to £950
    
    
  • Includes utilities, WiFi, cleaning, and furniture in one all-inclusive fee
    
    
  • Great for startups or hybrid teams seeking agility
    
    
• Traditional leases:
  
  
  
  • Charged per square foot per year
    
    
  • Additional expenses include business rates, insurance, utilities, service charges, and fit-out costs
    
    
  • Best suited for larger businesses with long-term plans. Explore managed office space and private offices in London if you're looking for a more permanent base.
    
    

If you're trying to determine how much to rent office space under either model, be sure to factor in all operational costs - not just the base rent.

Budgeting Tips for Office Space in London

When budgeting, remember to:

• Calculate total occupancy costs, not just rent
  
  
• Account for fit-out costs, which can range from £40 - £120 psf depending on finish
  
  
• Consider your team size, working patterns, and growth plans
  
  
• Choose a lease type that gives you the right mix of cost-efficiency and flexibility - especially if you're considering a managed office setup

Conclusion

So, how much does it cost to rent an office space in London? It depends on whether you're choosing serviced or conventional, West End or East London, Grade A or Grade B. Costs range from £180/month per desk in flexible spaces to £150 psf annually in high-end locations.

Need help estimating costs for your ideal office setup? Enquire now to connect with one of our expert brokers. We’ll help you find the right space, at the right price, tailored to your business.

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