Renting office space in the UK involves more than just the cost of rent.
To budget effectively, you need to consider location, office type, space requirements, and additional expenses like utilities and business rates.
Whether you’re a startup seeking a flexible workspace or an established business looking for a long-term lease, understanding office space rental costs is essential.
How much should I budget for office space?
The average cost of flexible office space in the UK per person per month is between £200 and £1400, depending on the amenities of the building/space and the location of the building, excluding VAT.
If you’re taking a conventional office lease, not a flexible office space, then rental costs will range from £20-150 per sq ft (this is an annual cost).
But these averages are very vague, so let’s break it down by region.
Average cost of office space in the UK
The average cost of office space in the UK per person per month varies depending on location and amenities, with Central London as the most expensive (naturally):
- Office in Central London: £500 - £1,400 per person per month
- Greater London and South East: £300 - £800 per person per month
- Regional cities (e.g., Manchester, Birmingham): £200 - £600 per person per month
- Smaller towns and suburban areas: £150 - £300 per person per month
These costs typically include rent, utilities, WiFi, cleaning, and furniture if you opt for a flexible workspace.
Dig deeper: How Much Does Office Space Cost in London?
Office space cost per square foot in the UK
If you prefer a conventional lease, costs are calculated per square foot per year:
- Central London: £70 - £150 per sq ft
- Greater London and South East: £30 - £70 per sq ft
- Regional cities: £20 - £40 per sq ft
- Smaller towns and suburban areas: £10 - £25 per sq ft
The exact amount depends on the building’s amenities, lease terms, and demand for office space in the area.
How much does it cost to rent an office in the UK?
The cost to rent office space in the UK depends on the type of office you choose.
There are two main options:
Flexible/managed office space
Flexible office spaces are typically rented per desk per month and offer all-inclusive pricing, which generally covers:
- Rent
- Business rates
- Service charges
- Utilities (electricity, heating, water, internet)
- High-speed WiFi
- Cleaning services
- Furniture
Flexible office space rental costs in the UK range from £200 - £1,400 per person per month, depending on location and building amenities.
This option is popular for startups, freelancers, and small businesses due to short-term contracts and scalability.
Most flexible spaces also provide access to shared meeting rooms, communal areas, and other amenities.
Conventional/non-managed lease
Conventional leases are more cost-effective per square foot but come with added responsibilities, so you’ll have to consider the additional cost of business rates, service charges, utilities (electricity, heating, water), cleaning and waste management, furniture, and insurance.
Office space cost per square foot UK for conventional leases is generally £20 - £150 per sq ft per year, depending on location and property grade.
This option suits established companies looking for a long-term base.
However, you’ll need to handle office management, including utilities, internet, cleaning, and maintenance.
What costs should I consider when renting an office?
When budgeting for office space rental costs, consider both ongoing and one-off expenses.
Ongoing costs
- Rent: Typically the largest expense, calculated per square foot per year.
- Business rates: Property tax on non-domestic properties, varying by location and property value
- Service charges: Cover building maintenance, security, and communal areas.
- Utilities: Electricity, heating, water, and internet.
- Cleaning and waste management: Essential for maintaining a productive workspace.
- Insurance: Building and contents insurance to protect your investment.
- Filling the fridge: Teas, coffees, milks, other drinks, and snacks — an absolute must.
- Maintenance and repairs: Ongoing costs for upkeep and unexpected repairs.
- Registered office address: If required for official business registration.
- Access passes: Managed offices may charge monthly for extra passes
One-off costs
- Deposit: Typically 2-3 months' rent, refundable at the end of the lease if no damage is incurred.
- Set-up costs: Some managed offices charge a one-off setup cost per office or per person.
- Furniture and equipment: Desks, chairs, meeting room setups, and technology.
- Office fit-out and design: Customisation and branding of the office space.
- Legal fees: For negotiating and drafting lease agreements.
- Move-in and move-out costs: Including removals, dilapidations, and refurbishment.
What are business rates?
Business rates are taxes paid on non-domestic properties, including offices, shops, and warehouses.
The rate you pay depends on the value of your property and its location.
If you opt for a fully managed office contract, business rates are typically included in the rental cost.
With conventional leases, business rates are charged on top of the rental cost but can be quoted on request.
Dig deeper: Your Complete Guide to UK Business Rates
What are dilapidation costs?
Dilapidation costs refer to expenses incurred when restoring a rented office space to its original condition at the end of a lease. These may include:
- Repairs: Fixing any damage caused during the tenancy.
- Redecoration: Restoring the space to its original paint and decor.
- Cleaning: Deep cleaning required before handing the space back to the landlord.
To avoid unexpected dilapidation costs, ensure the lease agreement clearly outlines your obligations and keep records of maintenance and repairs throughout your tenancy.
Find out more: Commercial Dilapidations London: Top Tips for Tenants
How much does it cost to refurbish an office?
As of 2025, office refurbishment costs in the UK vary based on the level of specification and the quality of materials used, ranging from £40,000 to the millions. Here's a breakdown:
- Low-specification refurbishments: Aimed at essential updates, low-spec refurbishments typically include basic décor, flooring, and partitioning. Costs range from £20 to £30 per square foot. For example, refurbishing a 2,000 sq ft office would cost between £40,000 and £60,000.
- Mid-specification refurbishments: Mid-spec refurbishments encompass more comprehensive upgrades, such as installing new ventilation systems, enhanced lighting, and improved washroom facilities. These projects typically cost between £35 and £60 per square foot. Thus, a 5,000 sq ft office would require a budget ranging from £175,000 to £300,000.
- High-specification refurbishments: High-spec refurbishments involve premium finishes, bespoke joinery, advanced technology integration, and top-quality furniture. Costs start at £95 per square foot and can increase based on specific requirements. Therefore, refurbishing a 10,000 sq ft office could begin at £950,000.
Please note that these figures are indicative and can vary based on factors such as location, building condition, and specific project requirements.
If you want a clearer idea of how much your office refurbishment would be, get in touch, and we’ll help crunch the numbers
What are the costs of meeting rooms?
If you are taking a managed office within a larger coworking space then it is probably that there are shared meeting rooms.
The costs of these vary from provider to provider. They may be:
- Free to use meeting rooms
- Credit system (set credits to use on meeting rooms per month)
- Pay per use
Find your perfect spot: 14 Cool Meeting Rooms in London You Should Book in 2025
How much office space per person in the UK?
Determining the amount of office space per person is crucial for creating a comfortable and productive work environment.
In the UK, the recommended space per employee depends on the office layout and working style.
Average office space needed per person
These figures account for desk space, communal areas, and meeting rooms.
- Open plan office: 70 - 100 sq ft per person
- Private offices: 100 - 150 sq ft per person
- Coworking spaces: 50 - 70 sq ft per person
How much office space do I need for 100 employees?
To calculate the cost, multiply the required space by the average cost per square foot in your preferred location.
For a team of 100 employees, you’ll need:
- Open plan office: 7,000 - 10,000 sq ft
- Private offices: 10,000 - 15,000 sq ft
- Hybrid layout (mix of open plan and private): 8,000 - 12,000 sq ft
Is rent on office space a period cost?
Yes, rent on office space is a period cost.
It’s an operating expense because it recurs regularly, typically on a monthly or quarterly basis, and is necessary for day-to-day business operations.
This expense is recorded on the income statement as a cost of doing business, impacting your net profit.
When planning your office rental budget, consider location, office type, and space required per person.
Balancing upfront costs with ongoing expenses is key to maintaining a sustainable budget.
By carefully comparing options and negotiating terms, you can find the right office space that meets your needs without breaking the bank.
Looking for help finding the perfect office space?
Reach out to our team of office space experts at Tally Workspace who can guide you through the process and find a solution that fits your budget.
The best part? It won't cost you anything extra.
