What is the average cost of office space in London?
Prime London office rents & business rates
Q1 2026 put London’s prime office market firmly ahead of the game. Our data shows City prime rents soared by 40% year-on-year, reaching a record £130.80 per square foot. In the West End, Mayfair and St James’s set a new standard at £201 per square foot, while Soho and Covent Garden also broke new ground.
Looking closer, the gap between best-in-class and secondary offices is widening rapidly. Grade A and fitted spaces in central locations continue to command a premium, as progressive occupiers prioritise ESG credentials and immediate move-in readiness. In contrast, older or peripheral buildings are being left behind, with several in Hammersmith and Vauxhall now set for alternative uses instead of attracting new tenants.
Key takeaways from Q1 2026
• City average prime rent hit a new record of £130.80 per sq ft, up 40% on Q1 2025
• West End prime rates held firm; top rent of £201 per sq ft achieved at 77 Grosvenor Street, W1
• Grade A space accounted for 92% of all Central London leasing activity
• New submarket rent records set in Soho, Covent Garden and South Bank
• Grade B rents forecast to decline in 2026, widening the gap between quality tiers
• No new Grade A supply of scale available until Q3 2027 in core locations
Scroll/click below for:
– The official SHB Q1 Rent & Rates Guide
– West End office market
– City Core office market
– Southbank office market
– Eastern Fringe office market
– Docklands office market
– Midtown office market
– South West London office market
London Office Rents & Rates
Prime markets continue to lead
Prime markets set new records as demand for quality intensifies and the race for competitive advantage accelerates.
Q1 2026 saw the City and West End prime markets surge ahead, with City prime rents up 40% year-on-year to a record £130.80 per sq ft. This leap was fuelled by a wave of trophy deals, where demand for top-tier space far exceeded supply. Seven City transactions surpassed £100 per sq ft, and a new City high of £160 per sq ft was achieved.
In the West End, headline rents remained robust at an average of £165 per sq ft, with the top rent reaching an impressive £201 per sq ft. Soho and Covent Garden also set new submarket records, underscoring the strength of demand for best-in-class space.
Grade A space led Central London take-up in Q1, accounting for 92% of all activity. This data-driven trend shows occupiers consolidating into higher-quality, future-proof offices, rather than settling for renewals. The premium for prime Grade A over Grade B is now at a record high, with Grade B rents set to fall further in 2026.
Below, we break down the latest rates for Grade A, Grade B, serviced, and managed offices across London’s key submarkets for Q1 2026. Alongside the numbers, we share the strategic insights driving each market’s performance. Essential intelligence for businesses ready to make future-proof, intelligent decisions.
Deep dive on submarket rents
West End Core | Mayfair & St James’s
The highest rents and rates in London. No significant new supply expected until Q3 2027.
• Grade A Fitted: £120 – £260 psf
• Grade B: £85 – £145 psf
• Serviced office: £950 per desk (avg) | Managed office: £180 – £300 per desk
• Business Rates (Grade A): £48.62 – £112.71 psf | (Grade B): £24.31 – £44.20 psf
• Vacancy: 4.1% (West End Core, Q4 2025, tightening further in Q1 2026)
West End | Fitzrovia, Marylebone, Victoria & Westminster, Knightsbridge, Soho & Regent Street, Paddington
Strong rental growth across Fitzrovia, Marylebone and Soho as spillover demand from the
• Grade A Fitted range: £70 – £160 psf
• Grade B range: £10 – £70 psf
• Serviced office: £700 – £950 per desk (avg)
• Managed office: £110 – £250 per desk
• Business Rates (Grade A): £29.84 – £68.51 psf (varies by submarket)
• Business Rates (Grade B): £11.05 – £30.94 psf
Mayfair/St James’s Core intensifies. Paddington remains the most accessible West End entry point.
Across the wider West End, prices remained robust in Fitzrovia, Marylebone, and Soho throughout Q1 2026. These areas have benefited as businesses seek quality West End locations at more accessible price points than Mayfair or St James’s.
Fitzrovia recorded asking rents of £70–£150 per sq ft for Grade A unfitted space. Marylebone ran at £70–£160 per sq ft, reflecting its position as a destination for financial, professional and lifestyle-led occupiers. Soho and Regent Street sit at a similar level (£70–£150 per sq ft unfitted), with the new record rent at 20 Air Street reinforcing the submarket’s strength for creative, media and professional occupiers prepared to pay for character and location.
Victoria and Westminster offer a broad price range of £70–£125 per sq ft, with steady demand from public sector and professional services. Knightsbridge (£65–£105 per sq ft) appeals to those seeking a prestigious address with less congestion and strong transport links. Paddington (£45–£75 per sq ft) remains the most affordable West End option, and ongoing improvements are enhancing its appeal.
City Core | City of London, Clerkenwell, Farringdon
Seven transactions above £100 psf in Q1. The most competitive occupier market in London for prime stock.
• Grade A Unfitted: £70 – £135 psf
• Grade A Fitted: £80 – £145 psf
• Grade B: £40 – £70 psf
• Serviced office: £700 per desk (avg)
• Managed office: £130 – £180 per desk
• Business Rates (Grade A): £35.06 – £65.45 psf
• Business Rates (Grade B): £13.64 – £31.83 psf
• Vacancy: 6.0% City Core, 210bps below the 10-year long-term average
• Average achieved prime rent: £130.80 psf, new record, up 40% on Q1 2025
The City set the pace in Q1 2026. Average achieved prime rents surged 40% year-on-year to £130.80 per sq ft, a new record, driven by the concentration of demand into the very small number of trophy buildings available. A new City high of £160 per sq ft was achieved, with seven deals completed at £100 per sq ft or more. The market-average Grade A City rent climbed 15% year-on-year to £80.43 per sq ft.
In the City Core, including Bank and Leadenhall Street, Grade A mid-rise offices are commanding around £90 per sq ft. The top floors of towers are now marketed at over £150 per sq ft. With almost no new large Grade A space available and a vacancy rate of just 6.0%, 210 basis points below the long-term average, the market remains highly competitive.
Southbank | Waterloo, Southwark, London Bridge
A genuine alternative to the City Core, with more competitive rates and strong transport connectivity.
• Grade A Unfitted: £60 – £105 psf
• Grade A Fitted: £70 – £115 psf
• Grade B: £30 – £60 psf
• Serviced office: £650 per desk (avg)
• Managed office: £140 – £180 per desk
• Business Rates (Grade A): £28.73 – £48.62 psf
• Business Rates (Grade B): £13.26 – £26.52 psf
• New submarket rent record: £140 psf (Quantexa at The Delft, SE1, Q1 2026)
SE1 take-up rose 45% in 2025. BP International confirmed 195,200 sq ft here in Q1 2026. Southbank delivered one of Q1 2026’s standout transactions: Quantexa’s acquisition at The Delft, 3–5 Montague Close, SE1 set a new submarket record at £140 per sq ft. BP International’s commitment to 195,200 sq ft at The Ink Building, Timber Square, SE1, the second-largest deal of the quarter, further cementing Southbank’s status as a future-proof core market for occupiers who might once have defaulted to the City Core.
SE1 recorded a 45% increase in take-up in 2025 compared to 2024, driven by demand for high-quality riverside buildings. Grade A unfitted rents across the submarket now range from £60–£105 per sq ft, while fitted space rents range from £70–£115 per sq ft.
Eastern Fringe | Stratford & Dalston
The most accessible entry point in London for growing businesses
• Grade A Unfitted: £35 – £45 psf
• Grade A Fitted: £45 – £55 psf
• Grade B: £20 – £35 psf
• Serviced office: £375 per desk (avg)
• Managed office: £60 – £100 per desk
• Business Rates (Grade A): £17.68 – £22.10 psf
• Business Rates (Grade B): £8.84 – £15.47 psf
Significant cost advantage over central markets with improving connectivity and regeneration-driven amenity. Stratford and Dalston offer the most accessible price points in London, with Grade A unfitted rents ranging from £35 to £45 per sq ft. For businesses prioritising cost efficiency or establishing an East London presence, the Eastern Fringe provides a compelling case, with ongoing regeneration continuing to raise the quality of available stock.
Docklands Prime | Canary Wharf
The best value for large-format, high-quality space in London
• Grade A Unfitted: £40 – £65 psf
• Grade A Fitted: £50 – £75 psf
• Grade B: £30 – £40 psf
• Serviced office: £600 per desk (avg)
• Managed office: £105 – £140 per desk
• Business Rates (Grade A): £19.89 – £30.94 psf
• Business Rates (Grade B): £11.05 – £17.68 psf
Canary Wharf and Docklands continue to deliver some of the best value for large-format, high-quality space in London. Grade A unfitted rents of £40–£65 per sq ft represent a significant discount to the City Core and West End while still offering modern, well-specified buildings. Visa’s commitment to 300,000 sq ft at One Canada Square confirmed the Docklands’ enduring appeal for operationally complex businesses requiring scale and infrastructure.
Midtown | Holborn, Bloomsbury, King’s Cross
Central connectivity and professional services heritage, without West End Core pricing.
• Grade A Unfitted range: £65 – £125 psf (varies by submarket; see table below)
• Grade A Fitted range: £70 – £120 psf
• Grade B range: £20 – £70 psf
• Serviced office: £600 – £1,100 per desk (avg)
• Managed office: £120 – £250 per desk
• Business Rates (Grade A): £28.73 – £55.25 psf (varies by submarket)
• Business Rates (Grade B): £11.05 – £30.94 psf
• Availability: Supply fell 7% QoQ in Q1 2026, the largest fall of any Central London submarket
• Key deal: Mishcon de Reya: 133,000 sq ft at MidCity Place, WC1 (Q1 2026)
King’s Cross commands the highest Midtown rents and desk rates, reflecting the strength of its estate and occupier demand from technology and media businesses.
Midtown led the way for leasing volume in Q1 2026, with supply dropping 7% quarter-on-quarter, the largest fall of any Central London submarket. Mishcon de Reya’s acquisition of 133,000 sq ft at MidCity Place, WC1 was the third-largest deal of the quarter, underlining Midtown’s ongoing appeal to professional services occupiers seeking centrality and connectivity without West End pricing.
King’s Cross stands out as Midtown’s top performer, with Grade A unfitted rents at £80–£125 per sq ft and serviced desk rates reaching £1,100 per desk, reflecting both the quality of the estate and strong occupier demand from technology, media, and professional services. Covent Garden (£65–£115 per sq ft unfitted) and Holborn/Bloomsbury (£70–£110 per sq ft) provide central London addresses at more accessible levels.
South West London | Vauxhall, Battersea, Hammersmith
The most affordable occupier market in inner London. High vacancy gives occupiers genuine negotiating power.
• Vauxhall, Battersea Grade A Unfitted: £55 – £75 psf
• Vauxhall, Battersea Grade A Fitted: £65 – £95 psf
• Hammersmith Grade A Unfitted: £45 – £65 psf
• Hammersmith Grade A Fitted: £55 – £75 psf
• Serviced office: £500 – £525 per desk (avg)
• Managed office: £90 – £120 per desk
• Business Rates, Vauxhall/Battersea (Grade A): £26.52 – £37.57 psf
• Business Rates, Hammersmith (Grade A): £22.10 – £30.94 psf
• Vacancy: Hammersmith 22% / VNEB 18% (Q1 2026, as reported)
South West and West London continue to offer more available office space than central markets. In Q1 2026, Hammersmith’s vacancy rate stood at 22%. Several buildings, including 255 and 200 Hammersmith Road, have recently been approved for alternative uses rather than being leased to new tenants. The vacancy rate in Vauxhall, Nine Elms, and Battersea was 18%.
These areas continue to attract tenants, particularly those involved in regeneration projects like Battersea Power Station or seeking modern, cost-effective space for their teams. However, demand remains softer than in central markets. Grade A unfitted rents are £55–£75 per sq ft in Vauxhall and Battersea, and £45–£65 per sq ft in Hammersmith.
Get a custom view
Q1 2026 highlighted a clear split in London’s office market: not only between prime and secondary offices, but also between submarkets with rising demand and those with surplus space. While the City set new rent records and the West End Core remained robust, fringe areas experienced vacancy rates of 18–22%.
As Q2 2026 begins, demand has reached a record 14.6 million sq ft, and the most forward-thinking businesses are already securing the best spaces. For companies making decisions now, it is essential to focus on the dynamics within each submarket.
These are market rents across available stock. For a specific analysis of your target location, size and specification, please contact our team and we will run a custom search.
Want a practical next step?
We’re offering a free Rates Health Check with our trusted partners at ForeView, to help clients understand what the April 2026–2029 cycle could mean for operational costs. Please get in touch to arrange a review – +44 020 3514 8867 or send us a note below.
