Office rental costs per square foot in London, England Q1 2020

The cost of rent for office space in London is the highest in Europe. In the first quarter of 2020, the West End had average rents per square foot of 112.5 British pounds. The average annual rent in London for prime office space was more than 550 euros per square foot annually than second place Paris.

Prime yields

For commercial real estate investors, prime yields in London averaged at between four and 4.75 percent at the end of 2018. 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, accounted for almost half of commercial investments in Western Europe during 2018. Between 2015 and 2018, the United Kingdom was the leading country in Europe in terms of commercial investment, with Germany coming in as a close second.