London is one of the oldest settled areas in the world and among the most expensive places to set up office space. The capital of the UK is also its financial and economic hub. As such, it offers a lot of prime locations for any kind of business.
Renting office space in London is not simply a matter of picking the least expensive option. Construction is certainly on the rise, but there’s still a significant shortage of office space to rent in the home of Big Ben. Read on to learn about the costs of office space in various areas of London and what those areas can offer your business.
An Embarrassment of Riches… Sort Of
With over 14 million inhabitants, London has the largest metropolitan area in the EU (source Wikipedia). In that massive space, one would assume that there’s space for every possible requirement. However, even in the face of Brexit, demand is surging for quality office space. As a result, occupancy is at the highest it’s been for a long time. Some are even turning to desk sharing options in London rather than office space. Here’s how the cost of office space breaks down in some of the most popular areas:
A very highbrow area, featuring offices in stately Georgian buildings, Mayfair is extremely well connected to other areas of the city. Centrally-located, it boasts both flagship locations and more modest office seekers that want a presence in the city. The prices are commensurate with the desirability of the area, ranging from around £800-£1500+VAT Per Desk PCM.
In the very heart of London, Soho is in close proximity to the city’s media industry. It therefore presents a great opportunity to create relationships for start-ups. Over a quarter of the area’s workforce are part of a start-up, making it the most creatively-oriented space in London. In the past couple of decades, Soho was also the focus of significant modernization efforts and has some of the most advanced business technologies available, including Shone, the areas fiber-optic ultra-fast internet connection. Prices are in the £800-£1200 +VAT per Desk PCM range.
One of the most lively and vibrant parts of the city, King’s Cross is teeming with galleries, cultural venues, restaurants, and has over three million square feet of office space. Renting office space at King’s Cross will make you a neighbor of such giants as Google, Universal Music, Haves SA, and many other global companies. The prices in this area are comparable to Soho – in the £800 to £1200+VAT per Desk PCM range.
During the dotcom bubble, Shore ditch was one of the most coveted areas in London and continues to be a hub for the creative industry. Traditionally, it was the supply center for the entire city. For that reason, it’s dotted with big open spaces in the form of warehouses; the perfect environments for creative-minded individuals. Part of east London’s Tech City, it houses myriad start-ups in the tech industry. Rental of office space in Shore ditch runs to around £700-£900+VAT Per Desk PCM.
A very desirable location during the hedge fund boom in the late-noughties, St. James’ Square once had the most expensive offices in London. This Westminster village is known for high-end shopping areas and the gentleman’s clubs along Pall Mall. Although it’s one of the busiest areas in the city, it does feature a few quieter corners and a typically British atmosphere. Shared office space London has in St. James will suit just about any business but many financial and wealth management companies call this area home. Prices are in the same range as Mayfair, typically in the range of £800-£1500+VAT per Desk PCM.
This area was traditionally the home of government offices and the oil industry. In recent decades the area has become a much more tech-oriented location. Renting in Victoria will make you close neighbors with several tech titans such as Microsoft and Facebook. It’s within walking distance of many attractions and supremely connected to the rest of the city. Once considered a stuffy area, Victoria has transformed its appearance into a modern and well-regarded location for everything from startups to financial institutions. Its offices generally sit in the £600-£1100+VAT per Desk PCM range, with some falling well beyond that top limit.
A Space for Every Need
London may be a huge city, but it’s also one of the most desirable metropolitan areas in the world. Any office space to rent London has to offer is bound to be fairly expensive, no matter where you decide to locate your company. However, with a little research and the right information, you can make your rent truly worthy of the investment.
Lloyd Harris is the CEO & Founder of Victor Harris Commercial. Formed in 2010, Victor Harris provides businesses with fantastic agency representation.
Lloyd is a seasoned property expert with unsurpassed knowledge of the London market. He set up the firm in order to provide businesses with access to market leading prop tech and also to provide professional agency services.