The Cost of Upgrading Office Spaces in the UK - Denton

Office Trends in 2024 – The Aim for Quality Continues 

Within the last few years, we have seen an increase in companies putting their employee’s well–being and productivity first by upgrading their office to accommodate their employee’s needs whilst also keeping up with modern ways of working. Sustainable fit–outs became increasingly more popular last year and will continue to grow in the upcoming years, along with wellness-centric spaces, flexible layouts, and more. These are the trends we foresee having an impact on upgrading office costs. In 2024, we predict these trends will continue, making it more important for companies to adopt them and upgrade their office spaces.  

The pursuit of premium space has been a driving force behind prime rental growth in various UK office markets. In 2023, numerous cities witnessed record headline rents, and this trend is poised to continue in 2024, with an average growth forecast of approximately 3% across most UK markets. We foresee a continued emphasis on creating flexible workspaces that cater to the evolving needs of businesses and their employees. 

The Average Cost of UK Office Space 2024

At DENTON, we understand that the average cost of upgrading your office space varies based on location, property type, grade, and market duration. Here, we present a summary of the average costs in key UK locations, offering insights into the evolving commercial property landscape so you can make an informed decision.  

These insights into the average cost per location have been provided by Sanderson Weatherall. 

London: £75 per sq. ft (£140 per sq. ft West End)  

Manchester: £43 per sq. ft  

Birmingham: £41 per sq. ft  

Leeds: £38 per sq. ft 

Exploring Average Rent Costs in UK Cities

London: The Epicentre of Premium Spaces 

Our analysis of London’s office rent rates reveals the city’s insatiable appetite for best-in-class offices. With 10 new office towers approved in the Square Mile alone, and over five million sq ft under construction, London remains a hub for cutting-edge workspaces. The market has experienced a surge in prime rent, driven by a limited supply of premium spaces depending on the specific location. For example, office spaces in the West End fall on the higher end of the scale. 

Eight Advisory

A Thriving Hub for Innovation 

Manchester, one of the UK’s fastest-growing cities, boasts lower office rental costs compared to the capital. We have explored Manchester’s vibrant office market, highlighting its record take-up figures in 2023. With top rent expected to reach £43.50 per sq ft, the city continues to attract major industries, offering reasonably priced yet innovative office spaces. 

Safferys