Office Space Benchmarks: What Companies Pay Across UK Cities in 2025

When finance leaders evaluate office space, they need reliable benchmarks. A rent figure without context is meaningless.

What does £60 per square foot in London really mean compared with £35 in Manchester? How much does a serviced office desk cost in Birmingham versus Edinburgh?

This article provides benchmark data for the UK’s key office markets in 2025, covering both traditional leases and flexible offices. It also explains how CFOs and Facilities Directors can use these figures to build accurate financial models.

‍

Why Benchmarks Matter for CFOs

· Budgeting accuracy: Prevents underestimating office costs in new markets.
· Negotiation leverage: Knowing city averages strengthens your position.
· Location strategy: Helps balance talent access with cost efficiency.
· Board reporting: Benchmarks add credibility to portfolio recommendations.

👉 Use LEVEL’s Office Cost Calculator to model costs by city and office type.

‍

Office Cost Benchmarks by City (2025 Estimates)

London

· Traditional Lease: £60–£90 per sq ft annually in City and Canary Wharf; £135–£155 in West End prime (Mayfair, St James’s).
· Flexible/Serviced Office: £700–£1,200 per desk per month.
· Notes: Highest costs in the UK, but still the prestige HQ location. Hybrid strategies often pair a smaller London HQ with regional hubs.

Manchester

· Traditional Lease: £30–£40 per sq ft annually.
· Flexible/Serviced Office: £350–£500 per desk per month.
· Notes: Strongest regional market, with growing finance and tech sectors. Costs are less than half of central London, but talent pool is deep.

Birmingham

· Traditional Lease: £32–£38 per sq ft annually.
· Flexible/Serviced Office: £300–£450 per desk per month.
· Notes: Attractive for professional services and back-office operations. Improved transport links make it increasingly popular.

Leeds

· Traditional Lease: £30–£35 per sq ft annually.
· Flexible/Serviced Office: £250–£400 per desk per month.
· Notes: Competitive rents and growing financial services presence. Popular for regional HQs.

Edinburgh

· Traditional Lease: £33–£40 per sq ft annually.
· Flexible/Serviced Office: £300–£450 per desk per month.
· Notes: Historic core with modern Grade A developments. Finance and technology firms anchor demand.

Glasgow

· Traditional Lease: £28–£34 per sq ft annually.
· Flexible/Serviced Office: £250–£400 per desk per month.
· Notes: Affordable compared with Edinburgh. Popular for creative and digital industries.

Bristol

· Traditional Lease: £34–£38 per sq ft annually.
· Flexible/Serviced Office: £300–£450 per desk per month.
· Notes: Strong tech cluster. Costs rising as demand outpaces supply.

‍

Comparison Table: UK Office Costs 2025

  City                       Lease (£/sq ft)              Flexible (£/desk/month)

London                  £60–£155                          £700–£1,200

Manchester           £35–£40                           £350–£550

Birmingham           £32–£38                           £300–£450

Leeds                     £30–£35                           £250–£400

Edinburgh              £33–£40                           £300–£450

Glasgow                 £28–£34                          £250–£400

Bristol                     £34–£38                          £300–£450

‍

How CFOs Should Use Benchmarks

1. Model Cost Per Employee
Divide annual occupancy cost by headcount. Flexible offices often look expensive per desk, but cheaper per employee when utilisation is factored in.

2.Compare Regional Options
A 100-person team in Manchester may cost half of London while still accessing top talent.

3.Plan Hybrid Portfolios
Combine a smaller London HQ with regional or flexible hubs for optimal cost and talent balance.

4.Support Negotiations
Use benchmarks as leverage to push back on above-market rents.

‍

Case Example: London + Manchester Split

A consultancy needed space for 200 staff. Instead of taking 20,000 sq ft in London, they:

· Signed for 10,000 sq ft in central London.
· Opened a 5,000 sq ft Manchester office.
· Added flexible memberships for overflow.

Result: 40% reduction in total occupancy cost while retaining London presence.

‍

‍

‍

FAQs: Office Space Costs

‍

What is the average office rent in London in 2025?

Between £60 and £90 per sq ft in the City; £135 to £155 per sq ft in the West End. Flexible desks range £700–£1,200 per month.

Is Manchester cheaper than Birmingham?

Yes. Manchester averages £35–£40 per sq ft; Birmingham £32–£38. But Manchester’s demand is stronger, which narrows the gap.

Which UK city offers best value?

Glasgow and Leeds currently offer the lowest per sq ft costs while still providing access to skilled talent pools.

Are serviced offices more expensive than leases?

Per desk, yes. But when you include fit-out, dilapidations, and exit costs, serviced offices can be cheaper over 3–5 years.

How can CFOs compare city options?

Use total cost of occupancy models. LEVEL’s Office Cost Calculator lets you test scenarios across different UK cities.

‍

‍

Office costs vary widely across the UK. CFOs and Facilities Directors who understand benchmarks can reduce spend, negotiate better deals, and design smarter portfolios.

London remains the premium HQ location, but regional cities like Manchester, Birmingham, and Leeds offer strong talent at lower cost.

👉 Use LEVEL’s Office Cost Calculator to compare your options. Model London vs regional HQs, flexible vs lease, and hybrid portfolios — and present a board-ready recommendation with confidence.