Latest Flex Office Market Insights: London Flexible Office Space Report - January 2024

How Much Does it Cost to Rent Office Space in the City of London?

How Much Does it Cost to Rent Office Space in the City of London?

Compare prices on office space and coworking desks across the City of London.

City of London Office Price Summary - Q1 2024

Stretching along the River Thames from Temple to Aldgate Station and in the North from Golden Lane Estate to the Blackfriars, Southwark, and London Bridges, the city of London is an ideal choice for businesses of all kinds to conduct their operations. And with only 8000 residents, it's no surprise that the City of London is known more for the 350,000 workers who commute there by walking, cycling, or taking the underground tube or train each day.

As London's financial district, the City of London includes the largest number of serviced offices and coworking desks in London. In fact, no other city in the UK comes close to the options available for businesses and startups to choose from. Whether it's the bare basics or luxury in a tier-one building, businesses choosing to operate in the City of London have the widest range of options to choose from.

For fans of architecture, the City of London is also home to many of London's tallest and most notable skyscrapers. From Twentytwo at 22 Bishopsgate and the Leadenhall building at 122 Leadenhall Street to the architectural wonder of 30 St Mary Axe and the "Walkie Talkie" at 20 Fenchurch Street, there's an office in or near many of these great buildings.

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Available Floorspace Rises Up 1% in Q1, 2024

With over 1.1 million square feet of flexible office space available, the City of London represents 15 percent of the short-term office space available across the UK. And with such a large concentration of offices, it's no wonder that the city also saw a large exodus of workers during the numerous lockdowns over the past two years which also led to a higher-than-normal vacancy rate across both traditional and serviced offices. Like Manchester, the amount of flexible office space increased throughout the pandemic as companies were forced to work from home and where possible exited their flexible short-term rental agreements. The following chart highlights the increase in floor space seen over the past 3 years.

Charts: Vacancy for Flexible Offices in City of London - April 2021 to March 2024
The chart above highlights the change in vacant flexible office space in sq.ft. across the City of London to March 31, 2024. Source: Rubberdesk real-time availability.

According to a recent coworking trends survey conducted by Deskmag, office operators in Europe noted that occupancy rates increased from 58% in late 2021 to 68% as of Q3 2023.

Chart: Occupation & Availability Rates of Flexible Offices - March 2023
The chart above highlights the rate of available capacity in current coworking spaces across Europe. Source: 2023 Coworking Trends by DESKMAG

City of London Desk Rates Show Signs of Recovery in Q1, 2024

After sliding throughout most of 2023, desk rates held steady at £700 per desk. While it's far too early to tell whether prices are on their way up, further interest rate increases and a struggling economy could keep a damper on any further rate increases over 2024. All of this of course is great for businesses yet to return to the office as there are great deals available for short term office space.

Chart: Median Price of Office Space in the City of London - April 2021 to March 2024
This chart highlights the change in the median price of office space per person per month across the City of London to March 31, 2024. Source: Rubberdesk real-time availability.

With continued inflationary pressure, the war in Ukraine and a souring economy keeping businesses on the sideline, desk rates in the City of London fell for a fourth consecutive quarter. For those businesses looking to rent new office space, there should be some great deals on offer such as free rent for 1-3 months for those businesses willing to commit to longer terms of 1 year or more.

City of London Flexible Office Space

Median Office Rate Per Person Median Coworking Desk Rate Flex Floorspace Available (sq. ft.) Available Desk Capacity
£700 £250 1,079,600 21,592

Desk Rate by Office Size

When considering the cost of a serviced office, it's important to know that prices vary by a range of factors including location and the size of the office. Larger offices tend to cost a bit more as they may include private meeting rooms, extra amenities as well as a private entrance. Median rates in the City of London range from £655 per desk for a 5-10 person office to £800 per person for a private enterprise office with 50 or more desks.

Chart: Median Price for Flexible Offices by Office Size in City of London - March 31, 2024

Desk Rate Near Tube Stations

When it comes to finding the perfect office for your business in the City of London, access is everything. With so many offices located within such as small radius, you will generally find multiple options within a 10-minute walk of a major tube or train station. The following chart breaks down the median office price per person for offices located within a 10-minute walk of a station. For the budget conscious, you'll find better deals near Bank Station for £658 per person while those wanting to be closer to Liverpool Street station will need a slightly larger budget of £725 per desk and up.

Median Monthly Rate by Tube Station in the City of London - March 31, 2024

Office Capacity by Floorspace and Size

Whether you're a sole trader, a startup with a team of 10, or a well-established business in need of an office for 500, the City of London has the widest selection of different-sized offices available. Though offices for teams under 15 people represent 53% of all available offices giving small businesses the broadest range of options, these offices only occupy 16% of the available floor space. Though these smaller offices represent the lion share of available spaces, their percentage has fallen from 66% in June 2022 to 53% today as we see operators offer a greater number of larger spaces to meet the demand for enterprise offices.

On the other side, larger spaces for teams of 16 or more make up 85% of the floor space. They tend to have a much higher median price due to special inclusions such as private floors, meeting rooms, entrances, and amenities that cater to specific business needs. Though these enterprise offices for larger teams of 50 plus staff are limited in areas outside London, the same cannot be said for the City of London where medium to large businesses have plenty of opportunities from hosts such as Servcorp, Uncommon, The Argyll Club, WeWork and Situu to accommodate large teams.

City of London Office Capacity by Floorspace and Office Listings - March 31, 2024

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City of London Serviced Office Operators

Like many factors in business, office space comes in many different varieties often defined by location, quality of the building, and amenities. In the City of London, Milo Offices, Our Space, and Huddle have offices available for under £400 per person. while Uncommon and Huckletree provide a higher-end option for those businesses with budgets over £900 per desk.

Comparing one operator to the other is not recommended on price alone though as most operators have their own style & fit-outs that differentiate them from other hosts. Thus we often recommend that businesses tour a number of spaces to get a good sense of the overall style rather than selecting on solely on price. WeWork vs Regus for example often have very different styles. While WeWork's office style is often described as casual and relaxed, Regus (IWG) is professional and corporate.

City of London Office Office Space Price by Operator - March 31, 2024

What is the Cost to Rent Flexible Office Space in the City of London?

With such a large number of workers commuting each day, the location of your office to transit is critical. Thankfully, there are hundreds of private offices available within a 10-minute walk of many of London's top tube stations.

Aldgate Station

Aldgate Station is an ideal choice for businesses seeking office space in London. Located in the East End of the city, close to Whitechapel and Shoreditch, it offers easy access to transport links such as bus stops (Route 15 and 25) and underground lines (Circle Line and Metropolitan Line). Businesses looking for office spaces here can choose from modern serviced offices suited to short-term let agreements or traditional leased properties with long-term options available. For amenities, there are numerous cafes in the area such as Cafe East and Lido Café, as well as shopping centres such as Whitechapel Market and Spitalfields Shopping Centre located just a few minutes away. Additionally, you'll find numerous parks nearby such as Tower Hamlets Park, Mile End Park and Victoria Park, perfect for leisurely strolls or perhaps a team outing. In sum, this vibrant area provides business owners with both convenience and leisure making it the perfect place for start-ups or entrepreneurs looking to set up shop.

Median Office Rate Per Person Median Coworking Desk Rate Flex Floorspace Available (sq. ft.) Available Desk Capacity
£666 £299 451,800 9,036

63 Saint Mary Axe London, EC3A

Up to 4 people
Private Offices

8 Devonshire Square London, EC2M

Up to 20 people
Private Offices

10 White's Row, Coppergate House, Spitalfields London, E1

Up to 12 people
Private Offices

5 Sandy's Row, The City London, E1

Up to 10 people
Private Offices
Up to 12 people
Private Offices

8 Devonshire Square London, EC2M

Up to 13 people
Private Offices
City 1-4 Desks 5-10 Desks 11-15 Desks 16-25 Desks 26-50 Desks 50+ Desks
Aldgate Station £694 £575 £533 £600 £724 £777
Bank Station £650 £600 £600 £615 £763 £791
Barbican Station £675 £525 £590 £675 £572 £884
Chancery Lane Station £660 £640 £650 £667 £720 £719
Liverpool Street Station £734 £695 £725 £660 £730 £788
Tower Hill Station £720 £634 £687 £648 £724 £750
Cannon Street £600 £600 £600 £600 £600 £634
Blackfriars Station £550 £550 £590 £550 £688 £769

Source Rubberdesk. All prices shown exclude discounts and offers. Talk to us about the latest offers available.

Frequently Asked Questions About Office Space in the City of London

How much does it cost to rent office space in the City of London?

2

As of March 31, 2024, the median desk rate for office space in the City of London is £700 per person per month.

How much does it cost to rent a coworking desk in City of London?

The median cost to rent a coworking desk in City of London is £250 per desk.

Author: Tom Petryshen, VP, Growth & Analytics
Updated: April 23, 2024

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