UK Office Space Price Guide

UK Office Space Price Guide

Our market report provides insights and showcases pricing and availability for flexible office space across the UK.

Market Summary

The flexible office market in the UK has grown steadily for a number of years with operators both old and new providing turnkey office space on flexible terms. As a major global centre it's no surprise that London provides the most Flex office space followed by Manchester and Birmingham.

As might be expected, the amount of vacant office space has doubled over the course of the Covid pandemic with net 3 million sq. ft. of flexible space becoming available over the past 18 months to December 2021. With tenants on much shorter term agreements than direct leases, these businesses were better able to react to new work-from-home circumstances and release office space where they no longer required it.

Vacant Flex Office Floorspace - December 31, 2021
The chart above shows the vacant flexible office space in sq.ft, across the UK to December 2021. Source Rubberdesk real-time availability.

Not surprising, the median cost to rent a desk in the UK fell from £700 to £500 per person during this same time as businesses using flex offices opted out of renewing their contracts to work from home leaving the operators with extremely high inventory rates.

UK Flex Office Space Median Price per Person per Month- December 31, 2021
The chart above shows median office price /person /month of vacant flexible office space across the UK to December 2021. Source Rubberdesk real-time availability.

Despite the recent surge in Covid cases, the outlook for the Flex market is positive. As the name infers, it's the most flexible tool businesses have today to manage costs during these continued uncertain times. As we have observed in other markets, when Covid restrictions ease, there will be considerable pent-up demand for quality flexible office space. In our view, the demand for quality offices can be attributed to both greater affordability and businesses need to entice staff back to the office and appeal to new hires in the war for talent.

Not All Offices are Created Equal

When it comes to office space, there are many different factors that influence the price you pay. These factors range from the location of the office, quality and standard of fit out of the building and the amount of space needed for the way teams function and collaborate. As expected prices are higher in sought after areas with premium addresses and high quality fit-out.

If you’re looking for flexible office space for 100 people or less, there are thousands of turnkey private offices right across the United Kingdom in every major city and many small towns across all regions.

A key starting point for many businesses is budget and the Rubberdesk research team has compared the major locations to look at the median office rate per month per person. Using the Rubberdesk platform and examining real time availability and pricing we are able to bring together the most thorough comparison possible. Here is where businesses can compare the entire market from Central London to South London, and Manchester to Cardiff to Glasgow.

At a macro level, the median price to rent a desk across the UK is £500.00 in a private office and £270.00 for a hot desk in a shared space.

Median Office Rate Per Person Median Coworking Desk Rate Flex Floorspace Available (sqm) Available Desk Capacity
£500.00 £270.00 5,776,800 5,758
Prices and availability effective Dec 31, 2021

While these prices and capacity give you a sense of the total market, it's important to break down each city to get a true sense of cost and availability in your city. As the chart below shows, London is the most expensive per person per month for private office space, boosted by the rates found in Central and West London. Outside London, you'll find rates in Glasgow, Bristol and Cardiff at least half of those typically seen in London.

Office Price Per Person by City - December 31, 2021
The chart above compares the median price per person per month for flexible office space in major cities across the UK as at December 2021. Source Rubberdesk real-time availability.

The rest of the report drills down into the detail of the office spaces available and provides the most comprehensive and up to date analysis of Flexible Office space anywhere. We’ve analysed almost 6 million sq. ft. of office space from over 5,700 offices for rent across the UK on Rubberdesk with real-time availability and pricing. And because Rubberdesk has thousands of hosts listing their office space for rent, it’s the best place to compare the market.

So, here’s what we’ve looked at:

Location, Location, Location

For any type of office, whether in a converted warehouse or a premium office building, location often dictates the price. When we dive into the data, key suburbs in Central and West London are by far the most expensive areas in the UK to rent office space, with Manchester, Birmingham and Glasgow in Scotland being far more economical. If budgets are tight as they are for many startups and may well be for many other companies as they return to the office post-pandemic there are plenty of locations on the fringes of London to save thousands per month.

Fixed vs Flexible Terms

Up until 2008, most commercial rental agreements were conducted on a fixed yearly basis for 5 to 10 years forcing companies to lock into long-term arrangements that may or may not fit the growth plans for the business. If a business grew or shrunk, it was at the mercy of breaking contract or lease re-assignment. The past two years have shown how even the best laid plans can go awry and in times of great uncertainty short term rental commitments are proving advantageous to businesses, if not Landlords.

With the explosion of the startup ecosystem and the coinciding growth of coworking and serviced offices, flexible terms became popular for many small businesses who didn’t have the budget to commit to long-term leases. Today, businesses of any size, from one to a hundred-plus staff have the option to sign more flexible agreements for a year at a time. This means that now, for the first time, the duration of tenancy commitment can match the certainty each business has about its plans and fit their immediate need with room to grow, resize or even relocate as required. For those businesses facing too much uncertainty and risk, there are even month-to-month agreements available for both coworking operators and traditional businesses who have spare office space to rent.

Monthly vs Yearly Terms

If you’re a big fan of flexible office space for the flexible payment options, then you’ll have a few choices to consider. If you’re not sure where you’ll be in 6 months or a year then a month-to-month contract is ideal, though you’ll pay a premium of anywhere from 10-20% for the privilege. If you don’t mind making a longer-term commitment for a year or longer then you can often negotiate a better deal than the rates shown. In fact, right now we’re seeing deals offering 40% discounts when signing a 12-month agreement to entice companies back after the pandemic.

Fully Managed vs Commercial Office Space

As a business, you have a plethora of options available from fully-managed office operators such as Servcorp to the new kids on the block including WeWork, Regus (owned by IWG), Mindspace, and UK owned Huckletree, Labs UK, and Bruntwood to name a few. From desks and chairs to printing and amenities such as showers and bike racks, these fully managed operators provide everything you need at a single monthly price with the option to add more desks or downsize the space as needed.

A commercial office space on the other hand generally requires a much longer commitment (often 3-5 years) and comes with extra costs such for furniture, electricity, IT, maintenance and cleaning. In addition, a traditional lease often includes costs for space you never end up using such as the lobby.

It's fair to say that the comparison of Managed Flexible Office Space to traditional Commercial Leases is like comparing apples and oranges. There are a number of differences between the two and each wins in their own regards. We'll save a comparison of the relative merits of each style for another time.

Coworking vs Private Office

Though many coworking operators have rates specifically for a single desk in an open plan space available, these generally represent less than 10% of the available spaces. Private and customised offices make up the vast majority of Flex space rented. These private offices typically share communal facilities such as meeting rooms, bathrooms, and kitchen areas but are self-contained and fully serviced.

When looking at office size, the smaller private spaces of fewer than 10 desks account for 55% of all available space. This is somewhat in response to demand for smaller private spaces by businesses that are looking for safe places for their employees to work away from HQ or home and with new physical distancing guidelines becoming the norm, we expect the operators to alter open plan coworking spaces into more private small offices.

Chart 1: Offices Available by Floor Space - Chart 2: Offices Available by Capacity
The charts above showcase the amount of floorspace and individual offices available by office size as a percentage across the UK as at December 2021. Source Rubberdesk real-time availability.

Though larger offices for 50 plus people make up less than 10% of the available offices, there are a number of large offices on offer for teams of 100-500 which account for 47% of all available floor space. Depending on where demand sits moving forward, these larger offices of course could be carved into smaller spaces as required emphasising the flexibility of modern office space in this sector.

Demand for Current Workspace Types

Prior to the pandemic, flexible desks were a popular choice for many individuals looking for a place to work, thought they quickly lost favour as businesses and coworking operators reacted to the changing demand brought on by social distancing guidelines and the need for private spaces.

However, as Covid-19 restrictions come to an end, demand for different workspace types is once again evolving. in a recent survey on 2022 coworking trends, DESKMAG found that coworking and serviced office operators have noted an increase in demand for flexible desks with demand now back in line with individual offices. Not surprisingly, DESKMAG found that demand for team offices outweighed both flexible desks and individual offices as larger businesses that have been fully remote start to plan for the future of a more hybrid workplace. And as business sentiment continues to improve, we expect demand for larger offices to outstrip other types.

Chart: 2022 Coworking Trends - Demand for Workspace Types
The results are based on the question: "How do you rate the current demand for the following offerings in your region." Results of the Coworking Trends Survey from Nov 23 - Dec 22, 2021.

How do you Calculate the Cost of Office Space?

For traditional office leasing, rent is calculated based on the annualised price per square foot and multiplied by the size of the space to give a net annual rent. On top of the rent, there are also outgoings and land tax which must also be paid by the tenant. For a 1500 sq ft unit with a £70 net rent, the monthly rent for an office near Liverpool Street Station comes out to £8,750 per month (1500 x £70 / 12 + VAT), on top of which are outgoings for building management, electricity, Internet, etc, which are not always fixed.

By contrast the flexible office space calculation is much simpler and typically based on the desk capacity of the office. If for example, each desk in a private office costs £600 per person, the cost for a 6 person office is simply £3,600 (£600 x 6 = £3,600 per month + VAT). Flexible office rental typically includes credits towards meeting rooms, printing facilities, but for heavy users of either, there are options to have these services included. Of course, in addition to the office space and desks comes access to common areas such as kitchens, meeting rooms, washrooms, and other amenities such as showers and even secure bike racks.

It’s important to note that a traditional office rent does not cover the fit-out, desks, or any amenities you want to offer your staff. In addition, you may be paying for excess space that you don’t need. Whereas a flexible office space gives you the opportunity to only pay for what you need and numerous amenities that would otherwise not be economical or feasible in a small traditional office setting.

How Much Does Flexible Office Space Cost by Office Size?

The cost of office space varies by location, amenities, proximity to transport, terms and economic factors. So when looking at the cost of office space it’s important to look regionally to get a better sense of what you might be paying in your location.

When it comes to the UK market, higher prices across greater London skew the median national price. Therefore it's important to break out pricing for London comparing to other regions across the UK. As shown in the table below, prices in London range from a low of £627 for a 5-10 person office to £725 for a larger 25+ person office. These prices are more than double the median price for all other locations with prices outside London ranging from £275 for teams of 16-25 people to £395 for teams of 50 plus.

Typically, the cost of office space for a smaller team is cheaper for teams under 25, though this will vary by city depending on the number of spaces available. The higher price range for a 50+ office is a reflection that it may encompass one or more entire floors with private meeting rooms, kitchens, and even amenties such as private elevator access.

Chart: Median Monthly Price Per Person by Office Size for Flexible Office Space in London vs the Rest of the UK
The chart above displays the median price of office space in London by office size vs the rest of the UK as at December 2021. Source Rubberdesk real-time availability.

The data presented throughout this document is based on the median prices available for 1-4, 5-10, 11-15, 16-25, 26-50 & 50+ private offices available in locations around the UK. While the prices for most large cities will encompass hundreds of options for each office size, smaller cities such as the Edinburgh may have fewer options available depending on the number of operators and little or no options available for some of the larger office sizes.

With a vacancy rate of 13.3% prior to the pandemic, there are now considerable discounts on offer with operators slashing prices due to increased vacancy rates. In fact, we've already seen a softening in prices over the past few weeks with prices on 50+ offices down 12% from mid May.

Flexible Office Price by City

At a city level, Greater London accounts for over 70% of the flexible office space in the UK, with Manchester and Birmingham respectively the largest centres outside London. Leeds follows, with Sussex and Berkshire not far behind and growing fast.

When it comes to price, London is the most expensive per person per month for private office space, boosted by the amount and rates found in Central and West London.

City 1-4 Desks 5-10 Desks 11-15 Desks 16-25 Desks 26-50 Desks 50+ Desks
London £650 £627 £649 £700 £725 £724
Manchester £365 £350 £375 £395 £350 £427
Birmingham £332 £336 £359 £394 £380 £380
Leeds £377 £300 £390 £270 £276 £165
Glasgow £322 £332 £323 £250 £288
Edinburgh £275 £250 £300 £99 £527 £504
Cardiff £215 £215 £178 £225
Bristol £300 £300 £300 £329 £250
Newcastle £146 £147 £135 £137 £96

Office Space Prices in Greater London

As a large global city, Greater London is as diverse as many of the regions around the United Kingdom with a range of office sizes, prices and amenities to meet the needs of almost any business. Though there are bargains across the city, prices are at a premium in the City of London with median desk rates ranging from £645 for a 1-4 person office to £786 for an office of 50 or more staff.

City 1-4 Desks 5-10 Desks 11-15 Desks 16-25 Desks 26-50 Desks 50+ Desks
Central London £695 £675 £695 £750 £771 £788
West London £650 £634 £657 £740 £674 £659
North London £500 £395 £410 £573 £595 £689
East London £500 £425 £400 £475 £434 £436
South London £500 £587 £495 £563 £749 £693

Frequently Asked Questions

How much does it cost to rent a desk in the UK?

The median price to rent a desk in the UK is £270 per person per month as of December 31, 2021.

What does it cost to rent a private office in the UK?

The median price to rent a private office in the UK is £500 per person with rates that range from £425 per person for a small office of 5-10 people to £682 per person for an office for 50+ people.

See Also

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