London is the capital of the UK, both in terms of land size and economy. The money generated in London contributes more in tax than it takes in public spending – billions, in fact. In 2016-2017, London paid the national economy £32.6 billion more than it took. The money generated in the capital is used around the whole of the UK. This makes it the beating heart of Britain.
It’s clear that there is money to be made in London, but with the financial rewards so great, competition for business premises is fierce. The cost of living and working in London is higher than the rest of the UK, meaning in order to make the most of the global connections and consumer market centred in the capital, you need to be prepared to pay for it, but just how much is it to rent office space in London?
The first thing to consider is location. London is the biggest city in the UK and spans 1,572 km². The differences between the 32 London boroughs are vast, but there are five established business districts that typically dominate the city’s economy.
City of London
The City of London – right in the centre of it all – is where you’ll find the highest concentration of finance businesses. Banking, broking, legal and insurance companies are rife in this area. There are almost eight million metres² of office space in the City of London. The average price for one sq/ft of rental office space in the City maxes out at £82.50, with forecasts indicating this price will rise in coming years.
Similar to the City of London is Canary Wharf. With iconic buildings like One Canada Square and Citigroup Centre, Canary Wharf in the Tower Hamlets borough of London is home to a concentrated number of bank and law firms. Canary Wharf is a growing area, but current estimates point to just over 2.1 million metres² of office space. One sq/ft of office space in Canary Wharf could set you back as much as £55.
Westminster is where you’ll find the majority of governmental bodies, alongside embassies, real estate businesses and private banking companies. There are almost six million metres² of office space in Westminster, with one sq/ft costing an average of £63.05 thanks to its proximity to the government.
Camden and Islington
Move slightly north and you’ll find the creative hub of the city. Camden and Islington attract high numbers of architecture, fashion and media businesses, making it one of the trendier boroughs. There is just shy of 2.5 million metres² of office space in this area, with top-end estimates pointing towards £82.50 per sq/ft.
Lambeth and Southwark
Lambeth and Southwark is very much an up and coming business hub, attracting accounting and consultancy firms aplenty. It’s currently the smallest of the five top business districts, with roughly 1.8 million metres² of office space available. Each sq/ft will cost you in excess of £46.31.
Of course, there is plenty more office space available for a cheaper price on the outskirts of London. It isn’t just the central five boroughs that contribute to the thriving economy of London, and as space becomes more precious in these areas, we’re likely to see more and more companies moving outwards into the outskirts of the city.
Renting office space in the likes of Hounslow, West London, could cost as little as £19 per sq/ft. In the East London borough of Havering, you can expect to pay in excess of £21.02 per sq/ft of office space. Both of these locations are situated within London and benefit from great transport links via the Tube and Overground, not to mention buses.
As mentioned, with space in the centre becoming even more of a premium than it already is and with prices set to rise further, it is highly likely that other areas of London – particularly the outskirts – will begin to play even more of an important role.
Finding an Office Space in London
If your business is looking to make the move to London, get in touch with a member of the Working Space London team today. Our property portfolio covers 99% of London, ranging from the central business boroughs to the outskirts.
We work directly with landlords, ensuring that our search and negotiation service is free for all our clients. Our team does all the leg work for you so you can focus on running your business rather than searching for a suitable office space.
To find out more, please contact us online or call us directly on 020 3950 0797.