London remains one of the most important commercial real estate hubs in the world. From flexible office spaces in Shoreditch to prime retail units in Mayfair, the capital offers a wide range of opportunities for businesses, startups, and investors. But with varying lease terms, fluctuating rent rates, and post-pandemic market shifts, understanding commercial rent in London is essential for making the right property decisions.
At Fraser Bond, we offer expert guidance to UK and international clients seeking to lease, invest in, or manage commercial properties in London. This guide explores the key trends, rental zones, legal considerations, and how to approach commercial leases strategically in today’s market.
Office Space: Traditional leases, serviced offices, or co-working spaces
Retail Units: High-street shops, boutiques, and showrooms
Industrial/Warehouse: Logistics, storage, and light manufacturing
Mixed-Use Developments: Combining commercial, residential, and hospitality functions
Commercial leases in London vary widely, but typical formats include:
Full Repairing and Insuring (FRI) Leases: Common for long-term rentals
Flexible and Short-Term Leases: Increasingly popular post-COVID
Turnkey or Managed Spaces: Ideal for startups or foreign entrants
| Area | Office Rent (psf/year) | Retail Rent (psf/year) |
|---|---|---|
| West End (Mayfair, Soho) | £100–£150+ | £250–£600+ |
| City of London | £65–£95 | £150–£300 |
| Shoreditch & Clerkenwell | £55–£85 | £100–£250 |
| Canary Wharf | £45–£65 | £80–£150 |
| Greater London (Croydon, Stratford) | £25–£45 | £60–£100 |
Rates vary depending on specification, building grade, lease length, and location.
Understanding the terms of the lease—including rent reviews, service charges, and break clauses—is crucial. Fraser Bond assists tenants in negotiating terms that align with their operational needs and growth trajectory.
In addition to rent, commercial occupiers must factor in:
Business rates (set by the local council and property’s rateable value)
Service charges (for maintenance, security, and common areas)
Insurance and fit-out costs
Not all commercial properties are interchangeable. Planning use classes (such as Class E for offices and shops or B8 for warehousing) determine permissible business activity. Fraser Bond ensures that properties match intended business use and assists with change-of-use applications when needed.
Hybrid Workspaces: Many businesses now prefer flexible leases and adaptable layouts.
Retail Repositioning: High street evolution is creating opportunities for experiential retail and mixed-use units.
Growth of Outer Boroughs: Areas like Croydon, Stratford, and Wembley are seeing increased demand due to affordability and transport improvements.
Fraser Bond provides end-to-end commercial property services, including:
Strategic location and asset sourcing
Lease negotiation and due diligence
Tenant representation and landlord liaison
Market analysis and rent benchmarking
Planning advice and business rate support
Portfolio management for multi-site businesses
Whether you're launching a flagship store, opening an office, or investing in a logistics hub, our tailored commercial solutions are designed to protect your interests and maximise return.
Commercial rent in London is shaped by numerous variables—from macroeconomic shifts to local market dynamics. With the right guidance, however, it remains one of the most rewarding real estate ventures globally.
Fraser Bond is here to help you navigate London’s commercial property market with confidence, insight, and a deep understanding of what it takes to succeed in the capital.
