How much does it cost to rent London office space?

“How much does it cost to rent London office space?” is the most common question we are asked. However, we can make the answer really simple. All you have to do is answer 3 simple follow-up questions and then head over to our Office Space Calculator.

Do you want short term or longer term space?

Longer term space

By longer term, we usually mean more than 2 years. If your headcount is stable and you know how much space you’ll need for the foreseeable future, longer term leased offices may be your best option.

Leased office space can to be much cheaper than serviced offices on a per ft² basis. So for the same budget you can occupy much more space.

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You can stamp your brand identity on a leased office, fit it out to meet your precise requirements and take full control of your own facilities (e.g. meeting rooms).

Depending on the length of the lease and the amount you spend fitting out your space, leased office space can to be much cheaper than serviced offices on a per ft² basis. So for the same budget you can occupy much more space.

Short term space

If however flexibility is important, serviced offices, typically taken from say 6 months to a year, may be much more appealing. In addition to providing fully furnished “plug & play” office space, serviced office providers offer a wide range of services e.g. manned reception, secretarial services, meeting rooms, Zoom rooms, privacy booths, kitchen / break out areas and concierge services. Some even provide beer on tap!

Serviced offices can be thought of like a hotel. They tend to offer smaller space for the shorter term, whilst offering premium services required when you are away from home.

For more information on the differences, have a look at a recent blog post: Serviced office or conventional lease? A beginners guide

Where do you want to be in Central London?

Historically, companies used to look for offices in “the right area” for their industry. Solicitors populated Holborn, media and creative companies worked in Soho and multinational corporates occupied swanky offices in Mayfair & St James’s.

Some industries still naturally congregate together, but these days most businesses are far more flexible on location.

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Some industries still naturally congregate together. Barristers work in the great Inns of Court, diamond dealers trade in Hatton Garden and bankers occupy large office space in Canary Wharf and the City.

Today, however most businesses are far more flexible on location. You’ll likely decide on your location by reference to:

1. Budget. Some locations are more expensive than others.
2. The best available physical office space for your business
3. Accessibility for staff and visitors.
4. Abundance of required leisure facilities e.g. restaurants, parks and gyms.

The cost of renting office space varies considerably across Central London. Have a look at our London Office Rental Guide to gain a better understanding.

What size office do you require?

Serviced office size

Serviced office size and cost is defined straightforwardly in terms of headcount:

• If you employ 1 person you want a 1 x person office
• if you employ 60 people you need a 60 x person office!

The rental cost of serviced office space is specified per desk.

When you start looking at options in more detail, your size requirement may increase. For example you may decide you also need an exclusive meeting room. On the other hand your requirement may reduce. Maybe for example your staff work hybrid and don’t need to come into the office every day.

Leased office size

The size of leased offices is measured physically in terms of square feet and the office rent is specified per square foot. Only the office occupier can decide how much space they want to occupy, just as private individuals decide how big their house needs to be. For the purpose of this post, lets assume you need around 80ft² per person. So if you employ 20 people you may want a 1600ft² office.

Have a look at our recent blog post: Calculate how much office space you need in 4 steps

BINGO!

Well done for getting this far! When you have decided on:

1. Taking longer or shorter term office space
2. Location
3. Size

…pease head over to our Office Space Calculator for the answer to the question “How much does it cost to rent London office space?”