Here’s our Central London office rental guide updated to March 2024 in which we estimate annual costs ( rent, business rates and service charge per square foot) for longer term leased offices. Serviced / flex offices are priced on the basis of a desk per month.
I used to think these 2 different ways of pricing (one per ft2 per year and the other per desk per month) were already complicated enough for office property virgins. But as demand for offices has shifted, supply from landlords has also adapted to meet new requirements . Two notable new markets have emerged, each one at a different price point.
Cat A Plus Office Space
The first new market goes by the snappy ( I don’t think) name of Cat A plus. In this manifestation of the leased market, landlords acknowledge that not all tenants want to rent an open plan office only to have to go through the heart attack inducing process of designing and fitting out their new office with a kitchen, break out area, comms room, meeting rooms etc. In Cat A plus, the landlord has pre-emptively fitted the office out. Brilliant, but how does this effect our rental guide?
Back to ContentsNot all tenants want to rent an open plan office only to have to go through the heart attack inducing process of designing and fitting out their new office.
Part Time Office Space
The other new market is for “part time” office space. Why rent an office for 5 days a week when your staff don’t want to return from the Lake District on Mondays & Fridays? A brilliant model designed for the hybrid working age but what rent do you pay for a part time office?
Why rent an office for 5 days a week when your staff don’t want to return from the Lake District on Mondays & Fridays?
They were efficient, entertaining and made it pain free for us!
Bear
The Answers
The answers are actually quite simple and soon we’ll incorporate these into a more comprehensive Central London rent guide.
For Cat A Plus offices, as a rule of thumb you will pay a premium of £5.00 – £10.00 per sq ft per annum for your new leased office.
Part time offices are priced on the assumption that not all days are created equally. Tuesdays, Wednesday and Thursdays will cost about twice the price of Mondays and Fridays. So if the desk is charged out at £800.00 per calendar month (pcm), you may pay £100.00 pcm for Mondays / Fridays and £200 pcm for each of the remaining premium days.
As the market evolves, watch our for improvements to our office rental guide, ensuring it remains a reliable resource as ever for making informed decisions.
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Ian Kitchener
Ian has advised Central London office occupiers for over 20 years - fighting their corner and making sure they get a great office on the best terms. He has a diverse client following, often working with creative companies.
