A clear guide to commercial office leasing in London – including costs, lease terms, brokers, and how it compares to serviced offices.
Leasing an office used to be the default.
For years, businesses followed the same model – find a space, sign a long-term lease, invest in a fit-out, and commit for the foreseeable future.
But the way companies work has changed.
Hybrid working, faster growth cycles, and the rise of flexible workspace solutions mean that leasing is no longer the automatic choice. Instead, it’s one option among many – and one that needs to be carefully considered.
This guide breaks down how commercial office leasing works in London, what it really costs, and when it’s the right move for your business.
What is commercial office leasing?
Commercial office leasing is a long-term agreement between a business and a landlord, typically lasting between 3 and 10 years, where the business rents office space and takes responsibility for managing it.
Unlike flexible workspace options, leasing gives you:
- full control over your space
- responsibility for setup and operations
- long-term commitment
For some businesses, that control is valuable. For others, it introduces unnecessary complexity.
How to lease office space in London
To lease office space in London, you identify your requirements, work with an agent or broker, view properties, negotiate lease terms, and commit to a long-term contract with associated costs.
Step 1 – Define your requirements
This includes:
- team size
- preferred locations
- layout needs
- budget
Leasing decisions are harder to reverse, so getting this right upfront matters.
Step 2 – Work with a broker or agent
Most businesses don’t go directly to landlords.
A broker can:
- shortlist suitable properties
- arrange viewings
- negotiate terms
The quality of the broker makes a significant difference to the outcome.
Step 3 – View and compare spaces
At this stage, you’ll assess:
- building quality
- floor layout
- natural light
- surrounding ares
Step 4 – Negotiate lease terms
This includes:
- rent
- lease length
- break clauses
- incentives (such as rent-free periods)
Step 5 – Fit out the space
Unlike serviced or managed offices, leased spaces are often empty.
You’ll need to:
- design the layout
- purchase furniture
- manage contractors
How much does commercial office leasing cost in London
Commercial office leasing in London typically costs between £40 and £150+ per square foot annually, depending on location and building quality.
The real cost of leasing
Beyond rent, you’ll pay for:
- Fit-out (often £50–£150 per sq ft)
- Furniture
- Utilities
- Maintenance
- Business rates
- Service charges
This is why leasing often looks cheaper upfront than it actually is.
Leased vs Serviced vs Managed Office
Leased offices
- Lowest cost per sq ft
- Highest risk + commitment
Serviced offices
- Plug-and-play
- Flexible
- Higher monthly cost
Managed offices
- Custom space
- Flexible terms
- Balanced approach
Should you use an office broker?
Yes – most businesses benefit from using a broker when leasing office space in London.
A good broker will:
- save time
- provide market insight
- negotiate better terms
However, it’s important to choose carefully, as incentives can vary.
When does leasing make sense?
Leasing is usually the right choice if:
- You have a stable, predictable team size
- You want full control over the space
- You’re planning long-term occupancy (3–5+ years)
It’s not ideal if:
- You’re scaling quickly
- You need flexibility
- You want minimal upfront cost
How to decide if leasing is right for you
The decision comes down to certainty.
If you know exactly how your business will look in three to five years, leasing can be a strong option. If not, it can quickly become restrictive.
More businesses are now evaluating leasing alongside flexible alternatives rather than defaulting to it.
