{"id":2424,"date":"2016-01-05T09:33:44","date_gmt":"2016-01-05T09:33:44","guid":{"rendered":"http:\/\/www.instantoffices.com\/blog\/?p=2424"},"modified":"2024-07-04T06:25:32","modified_gmt":"2024-07-04T06:25:32","slug":"cost-per-desk-in-london","status":"publish","type":"post","link":"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/cost-per-desk-in-london\/","title":{"rendered":"Can Small Businesses Still Afford Office Space in London?"},"content":{"rendered":"

Despite the resurgence in demand for London office space<\/a>, it\u2019s still possible for even small firms to find workspace in what is arguably the leading global centre for business.<\/p>\n

We have conducted extensive cost-per-desk research which suggests that, if SMEs take a progressive approach to office space, outside of the conventional office leasing model, they can still secure space next to the big blue chips that flock to the UK\u2019s Capital.<\/p>\n

Deloitte\u2019s \u201cCrane Survey<\/a>\u201d states that construction is still ongoing in London, making more commercial space available now than at any time since 2011. There is still not enough supply to meet occupier demand though. Office rents in the Square Mile have surged past \u00a355 per square feet, and according to Mat Oakley of Savills \u201cthere is a fundamental shortage of space.\u201d<\/p>\n

The ongoing trend towards urbanisation also means that, for more than a century, demand to live and work in the city has continued to grow. The Millennial workforce wants to work, rest and play under the shadows of the city\u2019s skyscrapers. To attract the best staff, employers have to recognise this demand.<\/p>\n

So for SME\u2019s that require a city base, or even large corporates that need space for a project that is near to clients, how can you go about finding affordable, central office space?<\/p>\n

We\u2019ve taken a close look at the average cost per desk in a flexible office environment, within some of the most popular areas around London. Given the host of benefits that come with being based in the capital, these areas remain surprisingly affordable. The following graphic shows the average cost per desk in London at a glance.<\/p>\n

\"average<\/a><\/p>\n

As shown in the infographic above, it is even possible to have a work station in West End, one of the city\u2019s current most desirable areas, for less than \u00a3800 per month. It\u2019s worth considering that the figures above represent average costs, and are certainly not representative of the lowest possible rates that one could find in each area.<\/p>\n

Let\u2019s take a closer look at average costs per desk in different areas, as they relate to current trends and developments in each area.<\/p>\n

West End – \u00a3732<\/h3>\n

The West End has seen an increase in desk price as of late. Even with new centre openings, occupancy levels remain high due to an ever rising demand in this area.<\/p>\n

Midtown \u2013 \u00a3635<\/h3>\n

There has been a slight drop in desk rates in the Midtown area. There are a number of centres with good occupancy levels here, but demand for this area is not as high as the West end.<\/p>\n

Southbank \u2013 \u00a3625<\/h3>\n

There has been a great rise in demand for the Southbank area, with the SE1 postcode becoming more and more sought after. This area offers both high quality creative and corporate office space, so it really does cater to all business sectors.<\/p>\n

City Fringe \u2013 \u00a3550<\/h3>\n

We have seen a dramatic increase in the demand for city fringe space recently, particularly in the tech sector. There have been a number of new centre openings geared specifically towards tech companies.<\/p>\n

Docklands \u2013 \u00a3600<\/h3>\n

Supply and demand in the Docklands remains largely unchanged, largely because the area appeals to a specific sector (financial). The available space is largely corporate, but very high quality.<\/p>\n

North London \u2013 \u00a3400<\/h3>\n

North London is always in high demand, and it offers a great range of quality and occupancy levels. Occupancy levels are generally high in centres, but there are still some with lots of availability which keeps the market competitive between operators.<\/p>\n

Northwest London \u2013 \u00a3480<\/h3>\n

The rates in North West London are not dissimilar from Southwest London. Most enquiries for this area come from local businesses in very affluent areas, such as Hampstead Heath, Marylebone and Primrose Hill, to name a few.<\/p>\n

West London – \u00a3575<\/h3>\n

The regeneration of multiple key locations in West London has maintained the relatively high per-desk rate, and in some cases, even increased it. Areas such as Chiswick and Hammersmith have remained very popular.<\/p>\n

Southwest London \u2013 \u00a3450<\/h3>\n

Southwest London has always offered competitive office rates, as there a number of affluent areas in the region, which allows for short commutes to work. Areas such as Victoria, Chelsea, Clapham, Fulham, Wimbledon and Wandsworth are always in high demand.<\/p>\n

Southeast London \u2013\u00a3300<\/h3>\n

Southeast London tends to be much more affordable than similar areas. There are not as many centres in this area and the major operators are notably absent. The demand in this area is not as high as its counterparts, with most enquiries coming from local business.<\/p>\n

East London – \u00a3300<\/h3>\n

There are not many mainstream operators with office space in East London, so the market is mostly made up of smaller independents. The space is very affordable, but is in higher demand than South East London, due to areas such as Hackney becoming hotspots for new creative start-ups.<\/p>\n

Our research suggests that, by utilising a flexible office space arrangement, companies can still afford to have a London base of operation and reap all the benefits that comes with that. Utilising a flexible office model you could, for example, start with a desk in the city fringe area, at an average cost of just \u00a3328 per month, and when the time is right, migrate to one of the more expensive areas.<\/p>\n

Aside from the obvious logistical advantages of being London-based, making use of flexible office space allows your company to remain agile, without the burden of a long-term lease. This lets your office space evolve in perfect sync with your needs and growth.<\/p>\n

Given that flexible, modular office letting and office sharing are relatively new trends, spaces designed for it are almost always newly refurbished, well equipped and surrounded by food and convenience stores. Take advantage of networking opportunities within the very building in which your team works and rub shoulders with the entrepreneurs driving the tech and financial start-up boom in modern London.<\/p>\n

Backed by an exceptionally diverse portfolio and unrivalled knowledge of the area, our team of brokers is uniquely equipped to help your company find the ideal London office space. Talk to us<\/a> and let\u2019s work together to find a space that\u2019s right for your needs and your budget.<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the resurgence in demand for London office space, it\u2019s still possible for even small firms to find workspace in what is arguably the leading global centre for business. We have conducted extensive cost-per-desk research which suggests that, if SMEs take a progressive approach to office space, outside of the conventional office leasing model, they can still secure space next to the big blue chips that flock to the UK\u2019s Capital. Deloitte\u2019s \u201cCrane Survey\u201d states that construction is still ongoing in London, making more commercial space available now than at any time since 2011. There is still not enough supply to meet occupier demand though. Office rents in the Square Mile have surged past \u00a355 per square feet, and according to Mat Oakley of Savills \u201cthere is a fundamental shortage of space.\u201d The ongoing trend towards urbanisation also means that, for more than a century, demand to live and work in the city has continued to grow. The Millennial workforce wants to work, rest and play under the shadows of the city\u2019s skyscrapers. To attract the best staff, employers have to recognise this demand. So for SME\u2019s that require a city base, or even large corporates that need space for a project that is near to clients, how can you go about finding affordable, central office space? We\u2019ve taken a close look at the average cost per desk in a flexible office environment, within some of the most popular areas around London. Given the host of benefits that come with being based in the capital, these areas remain surprisingly affordable. The following graphic shows the average cost per desk in London at a glance. As shown in the infographic above, it is even possible to have a work station in West End, one of the city\u2019s current most desirable areas, for less than \u00a3800 per month. It\u2019s worth considering that the figures above represent average costs, and are certainly not representative of the lowest possible rates that one could find in each area. Let\u2019s take a closer look at average costs per desk in different areas, as they relate to current trends and developments in each area. West End – \u00a3732 The West End has seen an increase in desk price as of late. Even with new centre openings, occupancy levels remain high due to an ever rising demand in this area. Midtown \u2013 \u00a3635 There has been a slight drop in desk rates in the Midtown area. There are a number of centres with good occupancy levels here, but demand for this area is not as high as the West end. Southbank \u2013 \u00a3625 There has been a great rise in demand for the Southbank area, with the SE1 postcode becoming more and more sought after. This area offers both high quality creative and corporate office space, so it really does cater to all business sectors. City Fringe \u2013 \u00a3550 We have seen a dramatic increase in the demand for city fringe space recently, particularly in the tech sector. There have been a number of new centre openings geared specifically towards tech companies. Docklands \u2013 \u00a3600 Supply and demand in the Docklands remains largely unchanged, largely because the area appeals to a specific sector (financial). The available space is largely corporate, but very high quality. North London \u2013 \u00a3400 North London is always in high demand, and it offers a great range of quality and occupancy levels. Occupancy levels are generally high in centres, but there are still some with lots of availability which keeps the market competitive between operators. Northwest London \u2013 \u00a3480 The rates in North West London are not dissimilar from Southwest London. Most enquiries for this area come from local businesses in very affluent areas, such as Hampstead Heath, Marylebone and Primrose Hill, to name a few. West London – \u00a3575 The regeneration of multiple key locations in West London has maintained the relatively high per-desk rate, and in some cases, even increased it. Areas such as Chiswick and Hammersmith have remained very popular. Southwest London \u2013 \u00a3450 Southwest London has always offered competitive office rates, as there a number of affluent areas in the region, which allows for short commutes to work. Areas such as Victoria, Chelsea, Clapham, Fulham, Wimbledon and Wandsworth are always in high demand. Southeast London \u2013\u00a3300 Southeast London tends to be much more affordable than similar areas. There are not as many centres in this area and the major operators are notably absent. The demand in this area is not as high as its counterparts, with most enquiries coming from local business. East London – \u00a3300 There are not many mainstream operators with office space in East London, so the market is mostly made up of smaller independents. The space is very affordable, but is in higher demand than South East London, due to areas such as Hackney becoming hotspots for new creative start-ups. Our research suggests that, by utilising a flexible office space arrangement, companies can still afford to have a London base of operation and reap all the benefits that comes with that. Utilising a flexible office model you could, for example, start with a desk in the city fringe area, at an average cost of just \u00a3328 per month, and when the time is right, migrate to one of the more expensive areas. Aside from the obvious logistical advantages of being London-based, making use of flexible office space allows your company to remain agile, without the burden of a long-term lease. This lets your office space evolve in perfect sync with your needs and growth. Given that flexible, modular office letting and office sharing are relatively new trends, spaces designed for it are almost always newly refurbished, well equipped and surrounded by food and convenience stores. Take advantage of networking opportunities within the very building in which your team works and rub shoulders with the entrepreneurs driving the tech and financial start-up boom in modern London. Backed by an exceptionally diverse portfolio and unrivalled knowledge of<\/p>\n","protected":false},"author":1,"featured_media":7488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[160,38,161],"class_list":["post-2424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reports-and-research","tag-cost-per-desk","tag-london-offices","tag-office-in-london"],"yoast_head":"\nCost Per Desk In London | Analysis - Instant Offices blog<\/title>\n<meta name=\"description\" content=\"We share our insights into the average cost per desk in London, across the city's most prominent business areas.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/cost-per-desk-in-london\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost Per Desk In London | Analysis - 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