Finding the right office space is a critical decision for any business, especially in a city as dynamic as London. With the city being a global hub for finance, technology, and creative industries, the demand for office spaces continues to soar. However, navigating the varying prices across different areas can be overwhelming, with factors such as location, size, and amenities all influencing costs.
In this article, we’ll break down the average office space prices in London, from budget-friendly areas to more premium locations, to help you make an informed decision for your business. Understanding the market will ensure you secure the best possible space to meet your operational needs.
Average Price of Office Spaces in London
The cost of renting office space in London is high. The price can vary based on the office location, type, and included amenities. Usually, offices in the West End and the City of London are more costly, while you can find cheaper options in the outer parts of the city.
Here is an overview of what to anticipate when looking for office spaces in London:
- Low-end office spaces: £300 to £500 per desk per month.
- Mid-range office spaces: £600 to £1000 per desk per month.
- High-end office spaces: £1200 to £1800 per desk per month.
According to Statista, Central London holds the most office real estate in the UK, with around 284 million square feet of built office space in 2024. This high concentration of office space reflects London’s prominence as a business hub and contributes to its wide range of office pricing. Providers like One Avenue Group, who focus exclusively on Central London, help businesses navigate this complex market by offering tailored solutions that emphasise accessibility, prestige, and convenience.
Area-Wise Breakdown of Office Space Costs
Below is the area-wise breakdown of office space costs that you can check via a tabular format.
| Area | Average Cost per desk (Monthly) |
| West End | £1000 to £1800+ |
| City of London | £800 to £1500 |
| Shoreditch and Old Street | £500 to £900 |
| Canary Wharf | £500 to £800 |
| Camden | £400 to £700 |
| Southbank | £600 to £1200 |
From these numbers, it’s easy to see how office space costs differ depending on where you are. The West End is known for being in a great location and is the most expensive, while some areas like Camden and Canary Wharf offer more affordable options.
Factors Influencing Office Space Costs
There are multiple reasons for the high cost of leasing office space in London.
Factor 1: Location
As mentioned earlier, prime areas like the West End and the City of London are pricier than exterior regions. Businesses in these areas gain advantages by being near:
- Financial institutions
- Corporate offices
- Top-notch facilities
Factor 2: Facilities
The type of additional benefits in an office can affect the overall expenditure. Fancy office spaces often come with:
- 24/7 access
- Helpful services
- Meeting rooms
- Recreational areas
These amenities make the office spaces more attractive but the cost is too high.
Factor 3: Size of Office
Consider the sizes of the office spaces while you are making decisions. You can see how many desks will fit or how much space is available. Expanding teams need larger spaces, which usually come with higher costs.
Factor 4: Lease Terms
Office spaces that offer flexible leases and shared workspaces are more expensive than traditional long-term leases because they provide extra convenience and flexibility.
Factor 5: Building Age and Condition
Newly built and recently renovated office spaces usually cost more than older buildings because they have modern amenities, are more energy efficient, and have a better layout.
Types of Office Spaces in London
When looking for office spaces in London, you will encounter various options. Each has its price and unique advantages. Here are the types of office spaces:
-
Serviced Offices
These office spaces are all furnished and other different lease options. The monthly cost for a desk can vary from £500 to £1800 or more, depending on the location and other factors.
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Co-Working Spaces
Looking for a place to work with others? Co-working spaces are perfect for:
- Freelancers
- Startups
- Small businesses
These spaces offer shared amenities and often include utilities and other perks. Renting a desk each month varies, from around £300 to £900.
-
Leased Offices
Leased office spaces are standard rental contracts lasting at least 3-5 years. Rental prices for leased spaces may differ, but they generally offer a lower cost per square foot compared to serviced offices. Nonetheless, it is the responsibility of companies to cover:
- Utilities
- Furnishings
- Maintenance
Office Prices: Low-End vs Mid-Range vs High-End
You must consider the detailed information for low-end, mid-range, and high-end office prices.
- Low-End Office Prices: Places like Camden, Canary Wharf, and Southbank offer cheaper options, with desks starting at around £300 per month. These areas still have good transportation and facilities, which makes them great for small businesses and new companies.
- Mid-Range Office Prices: Shoreditch and Old Street are great for firms seeking a balance between expenses and quality. Renting a desk in these areas typically costs between £600 and £1000 per month. They are popular among tech startups and creative companies, offering a modern and vibrant atmosphere.
- High-End Office Prices: Places like The West End and the City of London are great choices for an office space. You can expect to pay between £1200 and £1800 per desk monthly. These places offer great facilities near financial hubs, making them perfect for large companies and firms.
Frequently Asked Questions
Question: What is the average cost of office space in central London?
Answer: The average cost of office space in central London, near districts such as the West End and the City of London, varies from £1000 to £1800+ per desk per month.
Question: What are the cheapest areas to rent office space in London?
Answer: Camden, Canary Wharf, and Southbank have some of the cheapest office spaces, starting at approximately £300 – £500 per desk per month.
Question: What factors influence the cost of office spaces in London?
Answer: When considering an office space, it’s crucial to consider location, office size, amenities provided, lease terms, and the building’s condition or age.
Question: Are co-working spaces cheaper than traditional office leases?
Answer: Yes, co-working spaces are cheaper than traditional office leases.
Question: How can I find the best office space for my business in London?
Answer: You can find the best office space for your business in London by assessing your budget, location preferences, and office needs. Consult office space providers to help you find the best space you require.
Conclusion
The London office space market offers a wide range of options, with prices varying depending on where the office is located and the type of space. Whether you’re a small business with a tight budget or a huge company looking for a top-notch location, there’s an office that’s right for you. Assess the factors affecting office expenses thoroughly and select a location that aligns with your business goals.
