Economic recovery fuels demand and pushes office rents up in the West End
As business confidence in London has continued to improve, office space rent in the West End core has been increasing steadily, and are nearly where they were before the economy “went south” in 2008.
Opinion differs as to how low rent went during the recession, but the rough and ready figures for the very best and most centrally located offices – in Mayfair and St. James’s – they dropped to about £70 per ft2. They have now exceeded £100 per ft2
The gap between these two figures would be much wider if the business rates payable were not so high. Business rates for top notch offices in the centre of Mayfair can be about about £40 per ft2 per year.
Demand in more affordable areas fuels rent increases
But if you step away from these central West End locations, business rates can halve – so many businesses will choose a more cost effective location (once all the variable costs are added up) away from Mayfair and the St James’s. Heavier demand in these more affordable areas is now of course causing rents to rise faster than the West End core – but they still remain cheaper overall.
Have a look at our London Office Rental Guide for a complete comparison across the West End and London as a whole.
Rent rises as demand outstrips supply
Rents are rising, because demand is outstripping supply. Office space in London is becoming harder and harder to find. Here at Find a London Office, we have access to all the available office space – as well as vacant property before it goes on the market. So if you are looking for office space, find out a bit more about how we can help, or just tell us what you are looking for and we will take it from there.