×

CITYOFLONDON PROPERTY NEWS

Thursday September 26 2019

Londons West End remains most expensive UK office location




Londons West End remains most expensive UK office location

Lambert Smith Hampton (LSH) releases their latest Total Office Cost Survey (TOCS) which provides detailed information on office costs for over 50 UK locations.

Across 54 surveyed locations, the survey shows the prime core of London’s West End remains by far the most expensive UK office location, with the annual cost for a new office in Mayfair standing at £18,988 per workstation. This stands at 139% above the UK average and 45% ahead of the next most expensive office location, the City of London.

That said, for a third successive year, the survey reveals the gap between the UK’s principal regional cities and London has narrowed from an all-time high in 2016. This reflects the continuation of rental growth in major regional cities, alongside relatively stable rents in the capital.

The average cost of a typical workstation across the ‘big six’ cities - comprising Birmingham, Leeds, Bristol, Manchester, Edinburgh and Glasgow - stands 38% below London’s Midtown district, narrowing from a peak of 44% in 2016’s survey. Nonetheless, the cost appeal of the regional cities over central London remains strong; prior to the global financial crisis in 2008, the discount was only 25%.

This year’s survey also reveals that Cambridge has overtaken Maidenhead as the UK’s most expensive location outside London. The renowned university city has seen several successive years of strong rental growth, with annual costs amounting to £9,350 per workstation.

Costs rise ahead of inflation

Digging further into the research, the average cost of occupying a new build office in the UK increased by 3.4% over the 12 months to April 2019, accelerating from 2.6% growth in the previous year and running at double the rate of CPI inflation, at 1.8% over the period.

Notably, rental growth played a more significant role in driving the average cost increase for 20-year old buildings. Net effective rents increased by 3.3% on average over the year, compared with an average increase of 1.9% for new buildings.

Exeter sees the sharpest increase

With regards to new buildings, the average rate of cost increase over the 12 months to April 2019 concealed a wide range of movements between locations. Around four locations saw growth in excess of 10% over the past year. Exeter saw the sharpest increase, with occupier costs rising by 10.6%, closely followed by Liverpool (10.5%), Milton Keynes (10.3%) and Warrington (10.3%).

In Exeter, an absence of existing new build stock meant its rental increase was based on market sentiment, while the sharp rises observed in Milton Keynes and Liverpool were evidenced by transactional activity in their respective markets.

Meanwhile, Bristol saw the strongest growth in occupier costs for a 20-year old building, rising by 12.8% over the year to April. Supply of grade A space is extremely scarce in the city, which in turn is putting significant pressure on rental levels of older, secondary buildings.

Oliver du Sautoy, Head of Research at LSH said,

“UK office costs are now rising faster than inflation, reflecting tight supply of quality space all around the UK and an increasing recognition amongst occupiers that quality office space is key to staff productivity and retention.

“However, taking a longer-term view, the movement in average occupier costs has not kept pace with inflation over the past decade, meaning average costs remain lower in real terms than before the008 financial crisis. Only ten locations have seen occupier costs rise above inflation over the past decade, all of which are found within London and surrounding regions. “

To view LSH’s office occupancy costs across the UK, click here.



"Only ten locations have seen occupier costs rise above inflation over the past decade, all of which are found within London and surrounding regions."
Oliver du Sautoy, Head of Research at LSH








DISCLAIMER: The statements, opinions, views and advice expressed in this article are those of the author/organisation and not of ENTIRELY. This article should represent information correct at the time of publication however whilst every care has been taken to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. ENTIRELY will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within this article or any information accessed through this site. The content of any organisations websites which you link to from ENTIRELY are entirely out of the control of ENTIRELY, and you proceed at your own risk. These links are provided purely for your convenience and do not imply any endorsement of or association with any products, services, content, information or materials offered by or accessible to you at the organisations site.







Entirely London Jobs


Assistant Property Manager/Administrator (Part Time)

South West London


EA Recruitment have been instructed by our client an independent Estate Agency which has been established over 19 years based in Battersea.




Property Manager

Uxbridge


Property Manager £22,000-£25,000 salary + bonus Property Manager Role: As a Property Manager you will be reporting to the Head of Property Management, you will be responsible for providing a full Property Management service for the landlords.




Property Accounts Assistant

London


A Property Management Business based near Old Street - A Property Accounts Assistant - circa £28kYour new companyA Property company based near Old Street, which have a portfolio of residential and commercial properties the company have a detailed approach to all projects with include quality specification and project management.




Senior Client Accountant - Property Investor / Developer

City Of London


Senior Client Accountant - Property Investor / Developer.




Residential Property Manager

London


A fantastic and reputable company are looking for a property manager to join their team in Central London.




PA - Global Property Company

London


Personal Assistant - supporting the Global Head of HR * £18-£22 per hour (Plus holiday pay) * Award-winning Property company * West End, London * Start Date - Wednesday 14th August 2019 * 4 weeks (likely to be extended) Based in the heart of the West End for an upmarket, Global Property Company with one of the best reputations in the industry.




Property Manager

Stansted


Property Manager Stansted Full Time or Part Time considered at 4 days per week (9am - 3pm) The responsibilities of the role include: Dealing with all maintenance and emergency issues in a timely and efficient mannerAppointment and monitoring of contractorsOrganising quotes for repair/maintenance on behalf of landlords and overseeing worksProviding property management advice within .




Property Administrator

London


A well established London based agency are looking for a Property Administrator to join their team in Central London.




Financial Accountant

Central London


PART-TIME QUALIFIED ACCA or CIMA ACCOUNTANT.




Property Client Accountant

London


Property Client Accountant London, West End £28k-£33k Are you looking to take on a new challenge in an established company with a proven track record, which also offers great benefits and a fair work/ life balance? My client are a thriving international property management company specialising in commercial property, with a head office based in .




Property Accounts Assistant

London


Accounts Assistant (12 month FTC) London £30k-£35k Are you looking to expand your knowledge within the property sector and work client side on a portfolio of commercial properties based in the UK and overseas? My client are an investment company and landlord based in London, who own a prestigious portfolio of properties.




Property Management Client Accounts - 3 days a week

North West London


Client Accounts Manager - Property Management - Boutique Property Agency 25 hours per week (circa) - £25,000 circa per annum WEST HAMPSTEAD PARKING INCLUDED The role involves dealing with all client accounting for a property management portfolio of 70 clients with a total of approximately 200 ASTs, 60 commercial units and circa 20 buildings .




Property Administrator

North London


Property Administrator North London £22000 - £25000 Our client is a highly regarded and successful boutique Property group based in North London.




Intellectual Property Associate

South East London


Our client is a niche boutique law firm without the traditional practices of a stuffy firm.




Property Manager

North West London


The Property Manager will be required to deal with the day to day management of properties within the growing residential portfolio.




Sales Property Negotiator

North London


Sales Property Negotiator£18,000 - £20,000 + Excellent Commission StructureN.




Property Manager

Hounslow


The Property Manager will be required to deal with the day to day management of properties within the growing residential portfolio.




RECOMMENDED FOR YOU ON ENTIRELY PROPERTY






















































Discover the latest Industry News & Opinions on Entirely














We transform your bright ideas into brilliant digital products.