Mayfair has clinched the title of the most expensive location in the UK to rent office space, marking its territory as a hub for opulence and exclusivity. Businesses setting up shop in this upscale London district will find themselves paying a hefty £1,000 per month for each desk in a private office.
With the COVID-19 lockdown pushing employees into remote work, employers have been grappling with the challenge of luring their staff back to the office. However, new research suggests that the return to office life may come at a significant cost for both professionals and business proprietors, particularly in certain regions of the UK.
Unsurprisingly, London stands out as the priciest city for renting a single desk in an office on a monthly basis. Nevertheless, the cost varies significantly based on the borough of choice.
Data provided by FreeOfficeFinder reveals that, on average, renting one desk in a private serviced office space in London costs approximately £508 per month, inclusive of bills and service charges.
However, some areas within the capital command substantially higher prices. Mayfair, for instance, boasts an average cost of £1,013 per desk per month—just over two-thirds of the price for renting a typical one-bedroom flat in London.
Soho secures second place on the list, with an average monthly rent of £967 per desk. At the other end of the spectrum, Vauxhall, located just south of the Thames, offers a more affordable option at around £445.
The study also highlights the potential savings that can be achieved by expanding beyond Greater London. For example, office prices in Enfield average just £173 per month.
However, high office rents extend beyond the capital, with Cambridge and Leeds both recording averages of £440 and £417 per month, respectively. Those in search of more budget-friendly options may find solace in Newcastle, where office rentals can dip as low as £174 per month.
The rise of co-working spaces, which gained popularity during the pandemic, alongside remote and hybrid working setups, has further contributed to the evolving landscape of office rentals. Co-working spaces often come with a price tag of around £200 per month, with slightly higher rates in the capital, averaging £291 per month.
Nick Riesel, managing director of FreeOfficeFinder, commented on this shift in office leasing trends, saying, “We are seeing companies shun traditional leases of five to 10 years in length since COVID-19 and switch to the all-inclusive model of serviced offices. That demand has pushed prices up, but I predict price levels will remain much the same in the next 12 months.”
Top 10 Most Expensive Areas of London to Rent an Office (PCM):
- Mayfair – £1,013
- Soho – £967
- Victoria – £900
- Monument – £870
- Knightsbridge – £786
- Piccadilly – £765
- Oxford Circus – £763
- St James’s – £757
- Marble Arch – £757
- Bank – £732