When deciding whether a city or suburban office is best, the right choice depends on your company’s needs, preferences, priorities and goals. Deciding on a location for your business is a crucial decision that impacts cost, accessibility, reputation, and company culture.
It’s also important to consider where you operate. Companies serving clients in Birmingham, Manchester or Edinburgh wouldn’t benefit from renting an office space that is much further South, and vice versa.
This article examines the advantages and disadvantages of both city and suburban offices, enabling you to make an informed decision about which option is best for your business.
Why Businesses Are Rethinking Where to Rent Office Space
The rise of hybrid working and increasing rent prices mean that many businesses are choosing to rent serviced offices in suburban locations rather than in the city centre.
At FreeOfficeFinder, we’ve noticed that organisations that once prioritised reputation and having a prestigious business address are now comparing city and suburban workspaces to find the right balance between cost and work-life balance.
Benefits of City Offices
City offices remain popular with companies that value reputation, prestige and connectivity. Central London locations, such as Soho and London Bridge, place businesses in the heart of the city, offering access to excellent transport links, clients, and local amenities.
In our experience, city offices usually offer:
• Greater Choice and Availability
Central London offers a diverse range of serviced offices, catering to businesses of all sizes and industries. This variety allows companies to compare more options, making it easier for them to find a space that truly aligns with their needs, preferences and budget.
• Better Transport and Connectivity
Many of the serviced offices in London we market are within walking distance of an Underground station, often with access to multiple Tube Lines.
Several stations also connect to National Rail, Overground and DLR services, making commuting simple. This is particularly useful for employees who travel to the office daily.
This connectivity also makes it easier to organise business and client meetings as London is well-connected to other regions across the UK.
London also offers direct access to major airports, such as Heathrow and Gatwick, as well as international rail services via St Pancras. As a result, London often serves as a central hub for overseas clients, allowing them to attend in-person meetings more regularly.
Our clients have told us that this accessibility helps to improve communication and strengthen business relationships.
• Networking Opportunities
Networking events are much more common in cities like London, Manchester and Birmingham. This creates more growth opportunities and allows employees to establish valuable connections with other businesses.
• Local and On-site Amenities
We’ve found that many businesses prefer city offices for their proximity to local amenities, such as food markets, restaurants, bars, and leisure facilities. This convenience helps to improve work-life balance, offering clients a variety of options for lunch and after-work activities.
Many serviced office providers in Central London also provide premium on-site facilities, including cafes, gyms, wellness spaces, and even rooftop terraces. These features help to improve employee satisfaction, supporting healthy lifestyles and downtime.
Advantages of Suburban Offices
Suburban workspaces are more appealing to organisations seeking better value and additional space for growth.
We’ve noticed an increasing demand for serviced offices outside of Central London, particularly in areas such as Hammersmith, Richmond and Wimbledon. These locations offer a more relaxed environment and excellent transport links, at a fraction of the cost of a city office.
Advantages of renting a suburban office include:
• Reduced Rent Costs
Office spaces in suburban locations typically come with lower rental costs, ideal for companies with a tighter budget. Our clients tell us that this allows them to invest more in growth, training and facilities.
• Better Parking Availability
Suburban offices are often located closer to residential areas, which improves commute times. On-site parking is also much more common in serviced offices outside of Central London, making it easier for those who drive to work.
This helps to improve work-life balance by reducing travel time. We’ve found that this can also positively impact employee satisfaction and retention.
• Improved Focus and Wellbeing
Suburban offices typically experience less background noise and fewer distractions than city offices, which can improve focus and productivity.
Many of these areas also have more green spaces, allowing staff members to rest, recharge or take a leisurely stroll during the day. Our clients tell us that being in a calmer environment helps to support wellbeing by reducing stress.
• Sense of Community
Many suburban offices are located within business parks or neighbourhood hubs, benefitting from a stronger sense of community and local networking groups or events. This helps to bring businesses together, creating a more positive and supportive environment.
Drawbacks for Businesses: City vs Suburban
No location is perfect, and both city and suburban workspaces have their drawbacks. It is important for businesses to be aware of these when comparing offices, ensuring they avoid issues down the line.
City Office Drawbacks:
• Higher Day-to-Day Expenses
Working in the city also means that staff members incur higher everyday costs. Food, travel, parking, and gym memberships are usually more expensive in Central London and other major cities.
Employees also tend to spend more on after-work socialising, due to higher drink prices and more entertainment options. These additional costs quickly add up and can lead to financial pressures and reduced satisfaction.
• Competition for Office Space
The demand for workspace in city centres is consistently high. As a result, companies often face strong competition for workspaces, meaning they need to make quick decisions to secure an office. This is particularly common for serviced offices that offer premium amenities, as they tend to be more popular.
Because of this competition, landlords are typically less likely to offer incentives or discounts on office space.
• Less Space for Your Budget
Higher rental costs in the city often mean businesses secure less square footage for their budget compared to suburban offices. This can cause issues for growing businesses that require additional desks or wish to modify layouts as their needs evolve.
Smaller spaces also make it difficult for serviced office providers to include dedicated meeting rooms, breakout areas, or other amenities.
• Travel Disruptions
Although cities benefit from excellent transport connections, they also face a higher risk of disruptions. Rail and tube strikes, delays and engineering work make it more difficult for clients and employees to commute.
Suburban Office Drawbacks:
• Reduced Brand Visibility
Organisations based outside of the city centre do not benefit from the same exposure that comes with a central office, meaning it can be harder to establish a presence. This also limits opportunities to form new business relationships, reducing brand recognition and growth.
• Dependence on Road Travel
Those working in suburban offices tend to rely more on car travel than public transport. This suits employees who drive and live nearby. However, it can make commuting less reliable and lead to longer journeys due to traffic congestion.
• Less Prestige and Credibility
Unlike workspaces in Central London, suburban offices don’t benefit from a prestigious business address. This can impact credibility and reputation, which can be damaging for companies where image and a professional first impression are crucial, such as those in law, finance, or professional services.
• Smaller Talent Pool
In suburban areas, the local workforce is often smaller. This makes recruiting for new roles particularly challenging, especially for specialist positions.
Candidates are also less willing to travel long distances for interviews or daily commutes, so businesses may need to offer hybrid working arrangements to secure the right talent.
• Limited Spontaneous Networking Opportunities
Suburban office buildings tend to be quieter, with fewer employees and less social interaction. This restricts opportunities for spontaneous networking and collaboration, making it more challenging to establish new connections and can lead to feelings of isolation.
Which Companies Should Choose a City Workspace?
Based on our experience, city offices are ideal for companies with a focus on reputation, accessibility and collaboration, such as:
• Client-facing businesses - including legal, financial, marketing and recruitment firms that need to be close to clients and partners.
• Organisations focused on credibility and image - such as those in professional services looking for a reputable business address in areas like Mayfair.
• Companies hiring from talent pools – being based in the city makes it easier to attract skilled professionals and graduates, particularly for roles in the finance, tech and media industries.
• Teams that thrive on collaboration – the fast-paced environment of a city office and access to regular networking events is ideal for those who prioritise creativity, innovation and collaboration.
Who Should Rent a Suburban Office Space?
We’ve noticed that suburban workspaces suit those who prioritise value for money and flexibility, for example:
• Startups and SMEs – new businesses and growing SMEs benefit from all-inclusive serviced offices, which are budget-friendly with room to expand.
• Hybrid teams – including digital agencies and consultancies that do not need to be in the office every day and prefer locations with less traffic than central areas.
• Businesses looking for long-term stability – such as established regional brands seeking predictable costs and flexible terms, allowing them to stay settled without dealing with rising rents.
• Brands focused on employee wellbeing – suburban workspaces typically provide a calmer environment with less noise, congestion and more green spaces, which support a healthier work-life balance.
Striking a Balance Between City and Suburban Space
Finding a balance between the two is often the best solution. Many companies choose to rent workspace in central London for client meetings but prefer a larger suburban base for everyday operations.
Some businesses now rent offices part-time. This flexible arrangement allows them to share a private office with another organisation and to use the space on a rotating schedule. This works well for hybrid teams and brands that want to maintain a presence in London without paying full-time rental fees.
At FreeOfficeFinder, we also help businesses find coworking options, such as hot desking – perfect for teams that only work in Central London occasionally.
Deciding whether a city or suburban workspace is best depends on your budget, business model and overall needs.
City offices offer prestige, better opportunities, and access to amenities, whereas suburban office spaces are often larger and offer better value for money. Therefore, it is essential to determine which option best suits your company.
Our serviced office pricing tool enables businesses to compare current rental costs, a key factor when deciding between a city or suburban space.
