How Much Does London Office Space Cost in 2017?

David Murray

by David Murray

02.02.2017


While the true impact of leaving the EU will become clear in due course, uncertainty remains the dominant feeling within the current UK commercial property market. However, market confidence appears to have improved following the post-vote political upheaval. A reduction in interest rates have had a somewhat stabilising effect on the pound and reassured the markets; fending off the risk of any potential recession.

How Much Does London Office Space Cost in 2017?
Occupiers are still assessing the impact and their future business plans

As London’s occupier markets are coupled to the long-term prospects of the UK economy, the implications of the post-referendum property market are still developing. There has certainly been evidence of interruptions and delays of development schemes, but there was equal proof of deal continuity. Several high profile pre-negotiated deals took place in July 2016 (Ocado, Amazon and Wells Fargo), emphasising the London occupier market appears to retain its appetite for space.



Media reporting suggesting a mass-migration of companies vacating London for the EU to ensure ‘passporting rights’ may have been exaggerated and premature, but we are finding an upsurge in lease renewals with several international clients advising they are placing new investment in the UK on hold. There has been a marginal decrease in London’s grade A and B City prices due in part to uncertainty, which has also resulted in a number of new developments going on hold. However, it’s likely that we will see a recovery in prices as development gets back underway and more office space becomes available.



Cost of London Office Space 2017



































































































Borough Grade A Rent Grade B Rent
Knightbridge £85 - £95 £55 - £60
Hammersmith £55 - £60 £45 - £50
Chiswick £45 - £55 £40 - £50
St. James £110 - £120 £70 - £90
Victoria £70 - £75 £55 - £63.50
Mayfair £110 - £120 £70 - £90
Paddington £55 - £65 £40 - £55
Midtown West £65 - £77.50 £50 - £65
Soho £70 - £90 £65 - £70
North Oxford St East £80 - £90 £60 - £65
North Oxford St West £80 - £90 £60 - £65
Kings Cross £77 - £85 £60 - £75
Southbank £60 - £65 £65 - £75
City £68.50 - £72.50 £52.50 - £60
Stratford £40 - £50 £35 - £45
Canary Wharf £40 - £50 £35 - £50
Midtown East £65 - £70 £45 - £55
Euston £72.50 - £77.50 £55 - £60


Average 2017 Office Rental Costs based on Grade A newly refurbished space & Grade B space


(£ High - £ Low per sq ft per annum)



Outlook

The economic uncertainty in the wake of the referendum has generated caution and attention in the UK market which has been most prominent in London. Occupiers are still assessing the impact and their future business plans, and are likely to demand greater flexibility when signing leases. We can expect rents to continue rising, and further delays in new property developments.




You can download the full London Office Rental Guide here

Related blog articles

Share:

Tags: Office space planning,Office Space

Latest news from the blog

Here you’ll find top tips on office interior design, office relocation advice, commercial refurbishment ideas and our insights into workspace efficiency and its impact on workplace productivity, as well as guidance on virtually anything to do with a happy, efficient working environment.

View Blog