Average office rent per square foot in different areas in London, England Q4 2021

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2021, the West End had average rents per square foot of 117.5 British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market.

Prime yields

For commercial real estate investors, prime yields in London averaged 3.5 percent in 2020. As of compared to the rest of the United Kingdom, yields for prime office space in London was up to two percent lower.

Commercial investments

Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.