The average price of an office workstation in central London has increased in the last 12 months as businesses seek higher grade spaces, according to a report.
London firms typically paid £583 per month for a workstation, which typically accommodates one employee, in the heart of the capital in the first quarter of the year, OfficeBroker.com found.
The figure has reached its highest point in the five years the survey has been running, up £81 from £502 last year and significantly higher than the £418 per month paid for the average workstation in 2009.
Office space was most expensive in London’s West End, with the average workstation costing £721 per month, followed by SW1 at £641 per month, which includes areas such as Whitehall.
Comparatively cheap office space was available in the WC (£539), EC (£529) – which includes most of the City of London – and SE1 (£435) postcodes.
OfficeBroker.com head of UK sales Chris Meredith believes businesses have shifted from hunting for the cheapest office spaces to focusing on high class professional settings.
Meredith said: “Businesses are increasingly focused on the quality of the office space they require.
“A period certainly existed where price was the primary driver but this has shifted as firms realise that real value comes from its suitability and not simply the bill at the end of each month.
“Demand for this quality space has increased and as a result we have seen prices rise. I believe this change by decision makers highlights the mental adjustments and awareness of UK business owners.”
London businesses have become more focused on creating the right impression because the commercial sector is more competitive, Meredith believes.
Firms are now more concerned with their corporate image in a bid to attract potential clients, he added.
“With many firms now opting for smaller, more flexible office solutions as opposed to larger conventional leases they are able to opt for a higher quality of space yet still cut their overall occupancy cost,” said Meredith.
“Serviced office providers can provide business with high grade finishes at a fraction of the cost of the occupier fitting out their own space on a conventional lease in many cases.”