London Office Rent Market Overview
One of the recurrent concerns we encounter from clients is the cost of London office rent. The cost of rent varies significantly depending on the grade of the office and the area, with central locations and higher-spec offices commanding the highest prices. Office rent in London can range on average from as low as £20-30 per square foot for Grade B spaces in less central locations to over £145 per square foot for Grade A spaces in premium areas like St. James’s and Mayfair. The highest rent on record in the UK, and also thought to be the world’s highest rent, is £277.50 per sq ft, for a 2,700 sq ft office space on the sixth floor at Mercury’s 30 Berkeley Square in Mayfair.
Recognising the importance of having up-to-date, and actionable insights on the cost of office space, we have curated a guide to office rent in London. The intent of this guide is to assist businesses in navigating the multifaceted landscape of London’s commercial real estate, balancing both their spatial needs and budgetary constraints.
A review of the cost of office space in London in 2023 shows a complex landscape, undergoing transformative changes that echo global shifts in work culture, technology and an increased interest in sustainability. It is also one driven by economic factors and evolving tenant demands. Research from second quarter 2023 property reports shows a take-up of space in Central London totalling 2.0 million sq ft, a decrease of 7% from the previous quarter and 20% below the 10-year Q2 average. This marks the fourth consecutive quarter of take-up decrease, primarily impacting older, lower-quality spaces which have struggled to lease.
For a quick overview of office rent in London see our map below.