London is an amazing place for businesses to be based. From the huge talent pool available to the fantastic networking opportunities, it’s a fantastic location for small businesses. It does come with a cost though, as London is one of the most expensive places in the world to rent an office. Let’s take a look at the cost of renting office space in London, and ways to make it more cost-effective.
The average cost of office space in London
London has the highest costs for office rental in the whole of Europe. In Q4 of 2020, the average cost of office rental in the West End of London, per square foot, was £102.40 a month. The West End is the most expensive area of London, but other areas of the city make up the top three most expensive areas for office rental in the UK. Rents in the City of London are £65 per square foot on average, and in East London, you can expect to pay £40 per square foot per month.
When we look at it in terms of cost per square metre per year (a more common way of pricing on the Continent), we can see that the average price in London was €1,405 per square metre per year. Paris and Stockholm were the next two most expensive cities in which to rent an office, coming in at €930 and €700 respectively.
At the other end of the scale, Bucharest was the cheapest city for office rental, coming in at €228 per square metre per year, which is nearly a sixth of the cost of rental in the West End of London.
Even within the UK, you can expect to pay more for office rental in London than anywhere else in the country. The second most expensive city in which to rent an office is Bristol, which costs roughly £38 per square foot per month, followed by Manchester with an average cost of £37.50. The cheapest cities in the UK are Cardiff and Newcastle, where office rents are £25 and £26, respectively.
How to find low-cost office space in London
As you’ve seen, the cost of office space in the capital can be quite high – and that’s just looking at office space cost per square foot in London, never mind the other bills like utilities that you need to pay as well as hidden costs that you might not have factored in, like desks, chairs and computing equipment for your staff. Here are some ways to save money, particularly crucial when you’re starting out, but also habit-forming for the rest of your career.
Serviced offices
A serviced office space can be a great way to save money. When you move into a serviced office, it’s already fully fitted with everything you need for your business. That means all your essentials like chairs, desks and printers are already set up and ready to go, so there’s no need to factor in the extra cost of buying such equipment.
Everything is factored into the fixed fee you pay as well. Your internet, electricity and maintenance costs are included in the price you pay for your serviced office, so if you need the air conditioning serviced, or have to call a plumber out, you don’t need to pay any extra costs. This means that it’s easier to budget as you know that you’ll be paying the same amount month to month.
Office location
Another way of reducing the cost of your office rent is to look at different areas of the city. As already noted, the West End of London is the most expensive area to rent an office, but the East End is considerably cheaper. If you’re not tied to a particular area, you could reduce your office overheads just by moving over to the next borough.
Co-working spaces
Rather than going for a traditional or serviced office space, as a small business you might prefer a co-working space. Co-working spaces allow your growing businesses to easily scale up or down according to its needs. You may just need a few desks to start with, but as your company grows, you’ll need more space for your expanding workforce. A shared office lets you react quickly to changes in your business by simply adding more desks to your contract.
They also offer a great opportunity for start-ups to network as you’ll be sharing the space with other like-minded professionals – perfect for those looking to share experiences with other business owners and discover opportunities for collaboration or possibly even new clients.
Serviced office costs London
There’s a wide selection of serviced offices across the city to suit every need, starting from just £60 per month for co-working spaces. Alfred Place in Noho offers a unique private members business club with a co-working space and private meeting rooms for busy entrepreneurs, CEOs, directors and business members, all within a luxurious and inspiring environment.
If you want to be in the heart of media land, consider our fully serviced offices in Soho Square from £290 per month, including all bills. You can choose your own office configuration, whether you need a space for just two people or a whole floor for your growing team.
Our offices in Portman Close, Marylebone, are a great option if you want to be close to the heart of the city. Located close to both Bond Street and Marble Arch tube stations, this serviced office has 24/7 access, making it easier to offer flexible working hours that suit your team.
Whether you like the look of one of these offices or need an office space elsewhere in London, get in touch with us here at Easy Offices today. We’ll help you to find an office space that suits your needs and budget, and will send you everything you need, from pricing and service costs to availability and terms.
Confused by office jargon? We’ve created a useful Glossary of Flexible Office Space terms, whether it’s hybrid, hotdesking or coworking, we’ve got you covered!