If you want to rent an office in London, chances are you’ve already done some research into the kind of rental prices tied to different areas and the benefits that each of London’s many and varied districts can offer your business.
And indeed, looking up average rental prices is a good way of getting a general feel for the way office rent in London works.
When you drill down deeper, however, and really start to consider which of these areas would be best for your business, there are many more factors that suddenly pop up, leaving you with a lot to consider, and not much time in which to do it in.
I can’t promise to help you create free time out of nowhere, but I can at least lay bare some of the details of the London commercial property market, so when the time does come to juggle all these difficult decisions and rent an office in London, you’ll hopefully have a decent grounding in the facts.
Office Rental Prices In London
Let’s start with the simplest factor how much it costs to rent an office in London. In terms of the varying prices between different areas, the situation has remained pretty much unchanged for some time. You’ll pay the highest for grade ‘A’ office space in Mayfair, Soho or Marylebone. Rates in Hammersmith, Canary Wharf and Clerkenwell are amongst the lowest of the sought-after areas, and Knightsbridge, Holborn, Paddington and Covent Garden sit somewhere in the middle.
If you’re happy to settle for mid-range or budget offices, though, you can snap up good deals in the otherwise-premium areas of Soho, Fitzrovia and Victoria.
Compared to the last quarter of 2009, offices in Midtown, Mayfair, St James’s and the South Bank have seen amongst the highest increases in rental prices.
Rent Free Periods
On top of rental prices, you’ve got to consider variables you can negotiate with your landlord. These could have a huge effect on the decisions you make when choosing an area in which to rent office space in London.
One of these variables is the rent-free period i.e. the period in which you don’t have to pay any rent on completion of a lease.
The difference in typical rent free periods between London districts is worth looking into. Office rentals in the Docklands typically offer around 10 months more rent free than offices in the City fringe, for example.
Discounts For Office Rent In London
Another factor to consider is whether you can negotiate a discount on the landlord’s quoting rents when you sign up to rent an office in London. If you choose City of London office space that’s been on the market for a while, for example, you may benefit from bigger discounts than on grade ‘A’ offices in Mayfair or the South Bank.
If you’re looking for more information on the rent rates in London, it’s worth speaking to a commercial property advisor. They keep a close eye on the markets, and will be able to inform you of the latest, up-to-date figures.