London recently regained its spot at the top of the list for being the world’s priciest place to rent an office. The city first lost its first place spot to Hong Kong in 2008, but just six years later it’s managed to oust its Asian competition and once again become the most expensive business location in the world.
West End Takes Top Honors
It seems that it’s not just London that has the honor of being the most expensive in the world when it comes to office space; it’s specifically the West End. This area of London is home to many tourist attractions, businesses, government buildings, famous entertainment venues, exclusive restaurants and designer stores. It’s exceptionally popular with visitors and locals. It’s one of London’s most fashionable districts and an office in this area will surely set you back a small fortune just for the privilege of having a West End address. Review Why the North West Could Be a Brilliant Base for your Business.
Oxford Street, Mayfair and Regent Street are some of the West End’s most exclusive addresses and over the last six years, office space rates in these areas have shot up dramatically. Rentals in this location are a staggering three times the global average and the cost per square foot has become eye watering expensive. However, you are paying for the most sought-after address in the world, so any business in the West End is automatically awarded the prestige of being located within the area, and clients are sure to recognize that anyone who can afford office space here is clearly very successful.
According to recent studies, the typical West End office occupies approximately 10,000 square feet and houses around 50 employees. The area attracts business interest from around the globe and what was once considered London’s theatrical district is now also a business hub. For those who are on a slightly more restricted budget but still require the prestige of an exclusive London address, the office space Monument has to offer in the Bank Business District in East Central London also comes highly recommended, just with a lower price tag. Areas such as Monument, Canary Wharf and Westminster offer similar prestige but office space is more easily attainable and rents are slightly less too.
The West End can attribute some of its prestige and high prices to the limited amount of office space available. This has been a key factor in the fast-rising prices. Due to the large number of historic buildings, many of which are listed, planning permission for buildings or alterations is rare. Businesses are aware that West End office space is limited and some larger companies seeking the prestige of a top address have had to look elsewhere to accommodate their growing needs.
With London kicking Hong Kong into second place as the most expensive business district internationally it remains to be seen if it can keep its spot at the top. It could be replaced in the next few years by Beijing, New Delhi, Tokyo or Paris – all of which featured in this year’s Top 10 most expensive locations.