The cost of office space in London varies considerably depending on where you are, the type of arrangement you choose, and what is included in the price you’re quoted. The London office market is one of the most varied in the world, and the range of locations, arrangements and pricing models can make it genuinely difficult to know where to start.
The cost of an office in the capital can range from under £400 per desk per month to well over £1,500 in the most prestigious postcodes. By understanding what drives those differences, and what you are actually paying for, you can make a well-informed decision around the office that’s right for you.
We’ve been creating distinctive office spaces in London for over 25 years, with a collection spanning the capital’s most prestigious neighbourhoods. Whether you’re taking on your first London office, altering an existing arrangement, or simply trying to understand what good value looks like, this guide is designed to give you clear, honest answers.
This guide covers the main factors that shape office costs and cost per desk, such as what a private office quote typically includes, to give you the clearest possible picture and help you find the right office for your business.
Key takeaways:
- Location is the single greatest factor in determining office costs in London. Mayfair and St. James’s command the highest rates, while areas such as Holborn offer more competitive pricing.
- The type of arrangement matters as much as the postcode. Traditional leases may appear more cost-effective on paper, but additional costs frequently make them more expensive than they first appear.
- Private office quotes from a serviced office provider are typically all-inclusive, with everything covered within a single monthly figure, making costs more transparent and comparable across operators.
- Where you choose to work in London speaks to your business. The right address is not just an overhead, but a reflection of identity, ambition and standing.
Table of Contents
What affects the cost of office space in London?
Before looking at specific figures, it is worth understanding what drives the cost of offices in London. Several variables impact the price you will pay and understanding them can help you interpret any quote clearly.
Location and postcode
Location is the single most significant factor in determining the cost of an office space in London.
The office market across central London is highly localised: a short distance can mean a significant difference in price as well as in the character of the working environment. Mayfair and St. James’s command the highest rates, reflecting both the scarcity of supply and the reputational value that a W1 or SW1 address carries. The City of London sits in the upper-mid tier, with Covent Garden and Holborn offering a more accessible price point but remaining well-connected, while areas such as Southwark and Canary Wharf provide competitive rates for businesses not seeking a central postcode.
For many businesses, a postcode is a signal of standing, a first impression for clients, and a reflection of the ambitions of the business itself, and this affects prices as much as the area itself.
The type of arrangement
The average cost of an office in London also depends significantly on the type of arrangement you choose. There are three broad models:
- Serviced office spaces offer a dedicated, enclosed space for your team, typically priced per desk per month and inclusive of most occupational costs. They combine flexibility with a calm, professional and discreet environment.
- Coworking spaces offer shared working environments with varying degrees of privacy. They suit smaller teams or individuals who do not need a permanent base, but they are not always appropriate for businesses that require discretion or a consistent professional environment for clients.
- Traditional leases give you full control of your space but require significant upfront commitment: a longer term, fit-out costs, business rates, service charges and, often, a personal guarantee. The price here can appear lower on paper, but the total cost is typically higher once these additional costs are accounted for.
Lease length and flexibility
The length of your commitment is another key variable in the equation. Traditional leases are typically three to ten years, which can represent a significant liability for a growing business. Private and serviced offices are usually available on more flexible terms, with shorter agreements of twelve to twenty-four months. Shorter terms often carry a modest premium, but that premium is frequently offset by the financial risk avoided.
What’s included in the quoted price
Not all office space quotes are comparable and, when evaluating any arrangement, it is important to ask what the figure does and doesn’t include. For a serviced office, the monthly price typically covers rent, rates, service charges, building insurance, utilities and, in most cases, internet connectivity and access to an experienced on-site team. In a traditional lease, almost all of these are separate items.
What is the average cost of office space in London?
The “average cost” of office space in London is a figure that appears frequently and means very little on its own. The London office market covers an enormous range of product types, locations and lease structures, and an average drawn across all of this can conceal more than it reveals. For instance, a coworking desk in Canary Wharf, a private office in Mayfair and a traditionally leased floor in Holborn are all offices in London, but they are not the same product and should not be compared as if they were.
The cost of office space in London is most usefully considered by anchoring your comparison to the type of space that actually fits your business: the right area, the right arrangement and the right level of inclusion.
What’s the cost per-desk of office space in London?
Cost per-desk ranges for different areas in London
With that context in mind, the table below provides indicative monthly costs per desk across key London office districts for private and serviced offices, alongside Argyll’s current advertised starting prices. Argyll figures reflect current advertised starting prices and are subject to availability, while market figures are intended as a guide and should be verified against live quotes.
| Area | Approx. monthly cost per desk | Argyll offices from: | Cost notes |
| Mayfair and St. James’s | £800 to £1,500+ | £850 per desk/month | Varies significantly by building quality and inclusion of services |
| Kensington and Chelsea | £700 to £1,200 | £750 per desk/month | Scarce supply and high residential prestige, suits boutique businesses |
| City of London | £650 to £1,200 | £695 per desk/month | Higher demand from financial and professional services firms |
| Holborn and Covent Garden | £550 to £950 | £550 per desk/month | More accessible than the West End but still well-connected |
| Canary Wharf | £400 to £750 | No current locations. | Competitive pricing, but suits specific client profiles |
What drives costs above or below the average?
The cost of office space in London for any individual business will depend on factors beyond postcode alone. Building quality, fit-out standard, the size of your team (larger teams often unlock more favourable per-desk rates), the agreed term and what is included in the price all shift the figure materially. For instance, a well-designed office in a heritage building with a thoughtful, attentive on-site team will cost more than a functional desk in a large open-plan environment.
Cost per square foot across London areas
Office space cost per square foot is another measure commonly used in traditional lease negotiations in London. It provides a figure for the rent per unit of floor area, allowing businesses to compare buildings and locations on a more consistent basis.
The table below gives indicative cost per square foot figures across key London districts for traditional office leases.
| Area | Approx. annual rent per sq ft | Cost notes |
| Mayfair and St. James’s | £80 to £130 p/sf | Highest rates in the capital |
| Kensington and Chelsea | £60 to £90 p/sf | Limited availability, residential character commands a premium |
| City of London | £65 to £95 p/sf | Prestige locations command higher rates within the area |
| Holborn and Covent Garden | £55 to £80 p/sf | Well-connected, mid-range pricing |
| Canary Wharf | £35 to £55 p/sf | Most competitive of the mainstream London office districts |
Hidden costs not included in square foot pricing
The cost to build office space, or fit it out to a workable standard, is one of the most significant costs that per-sq-ft pricing excludes. For a traditional lease, a well-specified fit-out including flooring, lighting, partitioning and furniture has significant costs, often as much as £100 per square foot.
Further charges to account for include service charge, business rates, legal fees on lease execution, dilapidations liabilities at lease end, and any rent review provisions that increase the passing rent during the term.
Why does pricing differ for different areas?
The cost for your business is shaped not only by what you pay, but by what that address says about you. In London, where you locate matters, and the right postcode can do considerable work for your reputation before a client ever steps inside. We’ve outlined the attraction and atmosphere for different areas below, but for more information read our guide to the best office locations in London.
Mayfair and St. James’s
Mayfair, Marylebone and St. James’s command some of the highest costs in London, but for businesses in finance, law, private equity and family offices, a W1 address is rarely simply an overhead. These postcodes project an identity that clients and other businesses in the sector recognise immediately.
Kensington and Chelsea
Kensington and Chelsea carry a distinctly residential quality that sets them apart from London’s more commercial office districts. Office space is in high demand, which keeps supply tight and reinforces the sense of exclusivity. The area attracts boutique professional services firms, premium retail, creative consultancies and their clients, making the prestige of the address matter as much as the office itself.
City of London
The City remains the capital’s primary hub for financial and professional services, with a depth of connectivity and commercial infrastructure that few other areas match. The density and efficiency of the area suits businesses that benefit from proximity to their counterparties and to the wider financial ecosystem.
Holborn and Covent Garden
Well-positioned between the West End and the City, offices in Holborn or Covent Garden offer strong value relative to their excellent connectivity. They draw legal firms and technology companies that want excellent transport links without West End pricing.
What’s included in the cost of different arrangements?
The added costs for a traditional lease
Understanding what the office space cost of a traditional lease actually entails is essential before committing to any heads of terms. To the annual rent figure add:
- Service charges: usually 15 to 25% of rent, covering building management, maintenance, security and common areas.
- Utilities: electricity, heating, water and other energy costs are typically charged separately and should be factored into the overall cost of occupation.
- Business rates: set by the local authority and based on the Rateable Value of the property; currently equivalent to approximately 50 to 55% of Rateable Value.
- Fit-out costs: a well-specified fit-out can cost between £60 and £100 per sq ft or more.
- Furniture and IT infrastructure: rarely included in the base cost.
- Legal costs: solicitor and surveyor fees on lease execution and any subsequent reviews or renewals.
- Dilapidations: an obligation to return the space to its original condition at lease end, which can represent a substantial and often underestimated cost.
What is typically included in a serviced office quote?
Meanwhile, quotes for serviced offices take a different approach. The monthly office space cost per desk typically already includes:
- Rent and business rates
- Service charges and building management
- Utilities: electricity, gas and water
- Building insurance
- Cleaning and maintenance
- Broadband connectivity
- Access to reception and experienced on-site support team
- Access to shared spaces including kitchens and breakout areas
Many operators, including Argyll, include access to meeting rooms as part of the arrangement, either on an inclusive basis or at preferential rates for office customers. The result is that the true costs become more transparent, and the all-in monthly figure is genuinely comparable across operators.
Conclusion
Across the capital, office space costs range from around £400 per desk per month in Canary Wharf to over £1,500 in Mayfair and St. James’s, with the City and Holborn sitting broadly in between. Current advertised starting prices at Argyll range from £550 per desk per month in Holborn and Covent Garden to £850 per desk per month in Mayfair and St James’s, demonstrating how location, building and specification all influence pricing.
For businesses comparing models, the cost of an office space under a serviced arrangement is typically more transparent and competitive than a traditional lease, once the full picture of associated costs is considered. The flexibility these arrangements offer, particularly for teams whose size or structure may change and expand, is an advantage that does not appear in the costs.
Choosing an office isn’t simply a financial decision. The environment, location and experience it creates for your team and clients all contribute to the value it delivers. At Argyll, we’ve spent over 25 years creating distinctive London offices across the capital’s most prized locations. If you’d like to explore what’s available for your business, you can contact our team for more detailed information on our pricing or locations. Or discover our list of the best offices in the capital.
