As the office rental industry constantly evolves, some months of the year are better than others for renting workspaces. In London, the availability and pricing fluctuate significantly throughout the year due to seasonal demand, economic cycles, and market trends.
We have found that more businesses are choosing to rent managed and serviced office spaces for their flexibility and convenience. This article will provide a rundown of the specific time frame in which businesses can secure the best deal on their serviced office.
London’s Office Market in Yearly Quarters
Quarter 1: January to March
January marks the end of the Christmas holiday. With businesses approving their plans for the new calendar year, the serviced office rental market starts to rise. Companies looking to relocate or expand lead to an upswing in rental listings.
Ideal for:
• Newer businesses looking for their first serviced office.
• Organisations with improved budgets wanting to upgrade their office.
We recommend that negotiations occur early so favourable offers are confirmed before the February rush.
February sees a large increase in price, with the demand for offices in January increasing rental competition. Despite this, it can still be a good month for businesses looking to upgrade. This surge eventually calms down as we enter March.
Due to increased demand, serviced offices in the City of London, famous for businesses like UBS and Barclays, have been known to increase by 5-10% between December and January.
Quarter 2: April to June
Spring has a good mixture of availability and competition of office space rentals. The market is still active due to the early rush from February, but there is an addition of business centres looking to finalise leases before summer.
Perfect for companies that are:
• Negotiating new leases at the start of the fiscal year.
• Avoiding the summer slowdowns when the market dwindles.
Because of steady demand, private serviced offices in areas like Shoreditch tend to stabilise at around £450-600 during this quarter. April is especially a good time for strategic planning due to the balanced market and solid office space availability.
From May to June, popular areas see slightly elevated prices. The market is stable overall.
Quarter 3: July to September
The summer season is in, and high-position professionals are going on holiday. It is typical for the serviced office space market activity in London to slow down, making it a great time for negotiations due to reduced competition.
For example, serviced office prices in Bloomsbury tend to dip from anything between 10-20% per month.
September is when organisations start to focus again resulting in market activity rising.
Excellent for:
• Businesses wanting potential lower rents.
• Project-based companies looking for short-term availabilities.
• Companies looking to make the most of the Autumn market pickup.
• Startups with tighter budgets.
Quarter 4: October to December
Near the year’s end, business centre landlords tend to have attractive discounts on private serviced desk prices to fill vacancies for annual targets. In the West End, peak office prices of £880 to 950 tend to drop to around £840 to 910.
Ideal for:
• Securing deals before the end of the year.
• Companies making use of attractive discounts.
• Businesses needing an office space within a short timeframe.
Office space availability in London can be low in sought-after locations as many businesses are interested in securing incentivised offices before the calendar year ends.
The best time to rent office space depends on your business. If you’re a newer startup looking to rent your office in London, quarter 1 (January to March) could be the ideal time to take advantage of early negotiations. More established organisations have multiple options depending on their plans. Wanting lower rent? Consider quarter 3 to take advantage of the summer office market dip.
