In recent years, London has established itself as the world’s leading financial centre, whilst at the same time becoming home to burgeoning creative and tech industries. One downside to the strength of London’s economy is that the cost of office space is rocketing. According to a new report from real estate consultancy Knight Frank, the cost of renting office space in London is growing faster than in any other major city. London is now the third most expensive city on earth to have an office in, with only Hong Kong and New York costing businesses more in rent.
Businesses looking to limit their office rental costs may be interested in Flexioffices’ infographic, which shows the average monthly price per desk for London tube stations (Zone 1) as of the beginning of 2016. Below we look at the the best locations for businesses that want to stay central but save on costs.
Tower Hill - £400 per desk
With the City of London now the world’s leading financial centre, it is no surprise that office prices there are high, averaging around £750 per desk. If your business needs to be close to the City but cannot afford the substantial costs, Tower Hill is a great option. Given the appealing location of Tower Hill, it is surprising that it averages at only £400 per desk. Located on the Circle and District Lines, with Fenchurch Street and Liverpool Street stations nearby, Tower Hill has excellent transport links. When considering where to base your business, it is of course important to consider how appealing the location is to employees. In close proximity to the Tower of London and Tower Bridge, Tower Hill is next to London’s historic core. There are top restaurants such as The Wine Library and Bravas Tapas, whilst the River Thames is just a short stroll away.
Edgware Road - £400 per desk
With an abundance of transport links, Edgware Road is a superb location for commuting. It is on four tube lines (Bakerloo, Circle, District and Hammersmith & City) and is only one stop from Paddington and Marylebone stations, making it ideal for commuting to the south-west and north-west. Office space in Edgware Road averages at £400 per desk, compared to £750 in Marylebone and £1000 in Paddington! London can be a stressful place so another perk of Edgware Road is that it is located between Regent’s Park and Hyde Park. It’s also only 15-20 minutes away from Bond Street and Mayfair, two of London’s classiest and most expensive locations.
Pimlico - £450 per desk
Pimlico is a calm residential area known for beautiful Regency architecture and garden squares. Despite its stunning properties, the average monthly cost of a desk is only £450, comparing favourably to Victoria (£700), which is only one stop away on the Victoria Line. The fact that it is so close to Victoria Station makes Pimlico a super location for businesses needing to travel to and from Southern England. This isn’t the only thing Pimlico has got going for it - Tachbrook Street Market is perfect for lunch and Buckingham Palace, Tate Britain, St.James Park and Green Park are all just a short walk away.
Elephant & Castle - £400 per desk
Elephant & Castle has a somewhat negative reputation, however that is changing. The area, which is known for neglected council estates and poorly planned roundabouts, has been awarded £3bn for major regeneration. Gentrification has been happening for several years and whilst this has caused controversy, it is making the area more attractive to professionals. Elephant & Castle office space averages at only £400 per month per desk, despite the area’s increasing prosperity and first class transport links. Based on the Northern and Bakerloo lines, it is only 2 stops from both Waterloo (£650) and London Bridge (£750). That’s not all - it’s just 3 stops from the City and has a national rail station connecting to the South East. Businesses looking to build links with academia may benefit from the fact that South Bank University is based just around the corner.