Office space in London

From finance and fashion, to music and technology and everything in-between, London remains at the heart of almost every important social, cultural and economic revolution as it happens.

It’s a city that is always on the move and forever evolving, which is why it is seen by many as the business capital of Europe. This has driven and is reflected in the development of the flexible workspace market, which continues to grow, with serviced and hybrid offices becoming the preferred option for small start-ups through to multi-million pound brands.

Economy

The financial crash in 2009 changed the entire commercial landscape in the capital and as a result rents were reduced to incentivise businesses to invest in new office spaces. This has seen the likes of Google, Facebook, Amazon and Intel open new offices in the capital, while thousands of SMEs have taken the opportunity to grow and expand their operations.

London has the sixth largest city economy in the world, with a GDP of £565 billion, which accounts for approximately 17% of the UK's total GDP. The capital has a wide and varied economy that thrives on the many sectors, although the financial industry still remains the largest. The sector continues  to grow due to the central time zone and its connection with American and Asian markets giving  it a distinct advantage over other major cities in Europe.

The capital also plays host to the headquarters of a number of the largest banking organisations in the world. From Lloyd’s of London and HSBC, to Barclays and Standard Chartered, they each play a pivotal role in maintaining London’s financial prominence. For example, HSBC have over 7,500 offices established worldwide, while Barclays generate revenues in excess of £30 billion each year. Leading international banks have also set up home here for many years, including the likes of Deutsche Bank who make up part of the 251 foreign banks currently in operation.

The investment management sector in London is also one of the world’s largest and even in a post-Brexit environment it will remain a highly desirable destination for investors. A survey of fund managers currently working in the UK stated the regulatory setup was favourable compared to many other countries and the available financial opportunities were plentiful. Put simply, London is a market leader when it comes to fund management and it will remain a central hub thanks to the vast range of expertise and knowledge currently available to global markets.

Central to strengthening London’s economy is The London Plan. It was published in 2016 with the aim of making the capital a world leader in key sectors, with a set target date of 2036. This includes areas such as tourism, e-commerce and the implementation of fundamental practices to support environmental sustainability that will enable further development of the economy.

Which businesses operate in which areas of London?

While the landscape of businesses operating in London is wide and varied, certain industries are grouped together in pockets of the capital.

The PropTech sector is firmly established in the east end of London around the Shoreditch and Clerkenwell areas that are only a stone’s throw away from Chancery Lane, Holborn and the centre of the city. You will also find key players located in Barbican and Mansion House.

FinTech is an industry firmly on the rise and it has found a home in Tech City at Old Street. The close proximity to the financial heartland of the capital makes it easy to build relationships with potential investors, with a wide variety of travel options also available nearby. London’s South Bank also plays host to a cluster of FinTech companies, while Canary Wharf and Croydon are two other notable hotspots. Elsewhere you will also find the likes of the Francis Crick Institute and the Alan Turing Institute.

In recent years Kings Cross has transformed itself into one of the most desirable places to set up a tech business in London and is now home to both Google and Facebook.

London is renowned for its creative industries with Soho long being a hotbed for a mixture of small and large agencies. Since the late ‘90s Shoreditch has developed a reputation for the many creative companies that have taken up residency in converted warehouse spaces in and around Brick Lane. South Bank is a world renowned cultural arts centre, so it makes sense that likeminded businesses also base their activities in the local area.

Down the years Fleet Street was synonymous with the British newspaper industry. All of the major news companies have since left, but it has a rich history of journalism that goes back hundreds of years in the capital.

Elsewhere, you’ll find the jewel centre of the capital, Hatton Garden, just off Chancery Lane. The jewellery trade here goes back to the start of the 19^th century and today it is still filled with international retailers, dealers and traders.

If you want a sharp suit in London, Savile Row is still the place to go for a tailored fit. Tailors first arrived in the later 18^th century and it’s a tradition that still remains as strong as ever.

The West End is known right around the world for its amazing variety of entertainment, restaurants and shopping. From Regent Street and Piccadilly, to Oxford St, Bond Street and Leicester Square, there are a host of retail and media entertainment businesses located nearby.

Other areas to take note of in the capital are Hammersmith, which is home to a cluster of entertainment and art-based businesses, while Camden is also known for its collection of creative entrepreneurs.

London Rental Guide

As of the start of 2019, the cost of renting flexible office space in the UK varies between £50 and £1,500 per person/per month. The range is quite wide as it depends on the office location and the amenities being provided.

According to the GEDI (Global Entrepreneurship and Development Institute) the UK is still the fourth most popular choice for start-up businesses in the world, despite the uncertainty being caused by Brexit.

Below is a breakdown of the average cost of renting a flexible working space in London*:

*Guide prices per person per month, excl. vat.

How big is the London office marketplace?

Over the past year, London has regained its position as the most active commercial office marketplace in the world.  It has attracted more overseas investment than any other city, creating more innovative office spaces for businesses to enjoy.

In real terms this translates to £14.2bn of international investment, with Greater China accounting for 40% of that figure. Current surveys estimate there is a further £46bn of active capital looking to invest in creating new offices in the capital.

Investment levels are set to continue at the current rate, with the money coming from China larger than the pharmaceutical, automotive and machinery export industries combined. Brexit is causing some uncertainty but global buyers of property in London still see the city as one of the best places in the world to purchase and invest.

Offices to Rent in London

Get in touch with our Prime Office Search team today if you are searching for the right office space to suit your business.

Whether a start-up, medium-sized firm or a multi-national company, we make it easy to locate affordable and appropriate office spaces that fit the needs of your business. Our expert consultants take the time to understand your requirements and use their in-depth industry knowledge to find the right solution that makes financial and operational sense.

Our portfolio comprises over 2,500 types of office space and meeting rooms available to rent in London and across the UK, all available on all-inclusive, flexible terms. Our service is 100% free and impartial, with no obligation required on your part.